Interfor will implement a number of initiatives in order to adjust its business to operating conditions being impacted by COVID-19 as will Ponsse. Source: Lesprom
Interfor will temporarily reduce production across its operations in British Columbia, the Pacific Northwest and the US South. These curtailments are expected to reduce production by approximately 35 million board feet per week, which represents approximately 60% of Interfor’s production capacity. These curtailments will initially be for a two-week period and will be re-evaluated regularly.
Interfor is planning to reduce its capital expenditures in 2020 and 2021 by a total of approximately US$140 million. With this reduction, Interfor’s 2020 capital expenditures are expected to be approximately US$100 million and 2021 capital expenditures are expected to be substantially below US$100 million. Interfor will re-evaluate its capital expenditures as market conditions continue to evolve.
“We are very focused on ensuring the health and safety of our employees as well as adapting to the evolving market conditions,” said Ian Fillinger, Interfor’s President and CEO. “In addition, Interfor will remain disciplined in its approach to capital deployment as it focuses on retaining a strong capital structure.”
Ponsse summoned its personnel to employee co-operation negotiations due to the shutdowns of plants of component suppliers in Central Europe as a result of the coronavirus situation, resulting in problems in availability.
During the negotiations it was agreed to lay-offs for a period of a maximum of 90 days and they apply to the entire staff.
