VANCOUVER, BC—  Interfor Corp. will curtail operations at its Tacoma, WA sawmill on May 22. The company cited high log costs and productivity-related issues. Market conditions and the time it takes to complete operational improvements will factor in any restart date.

Interfor recently bought the sawmill from Tacoma-based Simpson Lumber Company, which built it in 2001. 

Interfor has recently reduced hours at its mills in Molalla and Gilchrist, OR and Port Angeles, WA, as well as Canadian facilities in Adams Lake and Grand Forks, British Columbia. 

In reporting its First Quarter results on April 30, Interfor noted a $1 million negative contribution from its Tacoma mill (formerly called Commencement Bay). In addition to higher log costs, lower lumber prices have also impacted results, the company said. It noted that average commodity lumber prices were down as weaker-than expected demand in China and a stronger U.S. dollar discouraged exports and encouraged imports into the U.S., contributing to excess supply putting downward pressure on product prices.

The company states near-term outlook for commodity lumber prices will be challenging unless there is a rebound in takeaway levels in North America or a reduction in available supply. It also anticipates log supply constraints in parts of British Columbia will continue, perhaps leading to reductions in production from that region. Modest increases in industry capacity and utilization rates, however, are anticipated in the U.S. South.