VANCOUVER, B.C. — Citing weak demand, high tariffs, a fiber shortage, and a variety of factors, Canfor Corp. on Sept. 4 has cut production on both sides of the U.S.-Canadian border.

Following a thorough review of its Canadian operating conditions, including the persistent challenge of accessing economic fiber, ongoing financial losses, weak lumber markets, and increased U.S. tariffs, Canfor announced on Sept. 4 the closure of its Plateau and Fort St. John operations located in northern British Columbia. These closures will impact approximately 500 employees and will remove 670 million board feet of annual production capacity from our BC operations. 

Canfor's Southern U.S. operations will see reduced production. Facing persistent weak lumber markets, Canfor said it will indefinitely curtail one shift at its Darlington, South Carolina, plant, and reduce operating hours at its Estill, South Carolina, and Moultrie, Georgia, locations. The company will also implement curtailments across other southern US operations to better align with market demand. These changes will reduce lumber production by approximately 215 million board feet on an annualized basis.

Don Kayne, president and CEO said, "Our company has proudly operated in BC for more than 85 years, supporting jobs and economic activity in communities around this province. During that time, we have always been prepared to manage through challenging times and fluctuations, recognizing the cyclical nature of our business. 

However, in recent years, increasing regulatory complexity, high operating costs, and the inability to reliably access economically viable timber to support our manufacturing facilities have resulted in hundreds of millions of dollars of losses in our BC operations.

The operating challenges we face have been further exacerbated by increases in the US tariffs. announced on August 13, are expected more than double again next year. Continuing to operate under these conditions would prolong the punishing anti-dumping duties and put additional operations at risk period. As a result, we are making an incredibly difficult decision to close our options in Vanderhoof and Fort St John. 

We are devastated by the decline in our province's foundational forest industry, and we recognize the impact these closures will have on our employees and their families, as well as our First Nations, partners, contractors, suppliers, communities and customers. We are committed to supporting our employees and will work with our union partners on our employee Transition Plan, including severance. 

The wind-down of operations is expected to be complete by the end of the year.

With a dramatic reduction in available timber supply, we will explore the opportunity to divest some of our northern BC tenure, which may help support other BC forest companies facing the same significant challenges in accessing fiber. Finally, we will continue to do all we can do to advocate for changes that will allow our industry to once again to thrive in future period."

Lee Goodloe, president, Canfor Southern Pine, said "The changes we are making today will better align production capacity in our US operations with current market conditions. e regret the impact these changes will have on our employees and their families."

The company will continue to evaluate conviction conditions on ongoing basis, and just operating rates to align with market demand.