VANCOUVER, BC - Canfor Corporation announced today that, following a review with its Board of Directors, the Company will be proceeding with a 2011 capital spending plan for its lumber business of $145 million, of which $120 million will be for improvement projects to its sawmilling facilities. The balance will be for maintenance projects. This is part of a three year strategic plan that calls for total investment in sawmill improvement projects of $300 million.

"This level of investment will secure our position in the top tier of competitiveness, and marks an exciting new chapter for Canfor," said Jim Shepard, Canfor President and CEO.

Canfor is a leading integrated forest products company based in Vancouver, British Columbia (BC) with operations in BC, ,Alberta, Quebec, Washington state, and North and South Carolina. The Company produces primarily softwood lumber and also produces oriented strand board (OSB), remanufactured lumber products and specialized wood products. Canfor also owns a 50.2% interest in Canfor Pulp Limited Partnership, which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange under the symbol CFP.

SOURCE: Canfor