VANCOUVER, BRITISH COLUMBIA--(Sept. 22, 2010) - Canfor Corporation (TSX:CFP) announced today that it will be permanently closing its Clear Lake lumber operation located near Prince George, B.C., effective January 13, 2011. This decision stems from a combination of challenging markets due to the protracted downturn in new home construction in the U.S., and a lack of economic long-term fibre supply for the Clear Lake operation.
Approximately 185 employees will be impacted by this decision, which will remove approximately 130 million board feet of production on an annualized basis. The closure is expected to result in a charge of approximately $12 million to the Company's net income for the third quarter.
"This decision in no way reflects the efforts of the workforce at Clear Lake. We would like to thank them for their efforts and we will strive to place impacted employees in other Canfor operations where possible," said Jim Shepard, Canfor President and CEO. "We remain committed to our highly-valued customer base, while being responsive to market demands and pressures."
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.
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