By Chad Klassen

CANFOR CHANGES

Canfor to curtail production at all mills starting Mar. 30 due to impacts from COVID-19

Mar 26, 2020 | 9:44 PM

VANCOUVER – Months after shutdowns and curtailments across B.C. mills, putting thousands of people out of work, Canfor is announcing more slowdowns in production as a result of COVID-19.

The company said on Thursday (Mar. 26) that starting Mar. 30, lumber production at its Canadian operations will be reduced by about 40 per cent (70 million board feet) during a three-week period.

“The COVID-19 outbreak has negatively impacted global demand for forest products and disrupted supply chain networks,” Canfor stated in a release. “These curtailments and variable operating rates will be assessed weekly and adjusted as needed in response to rapidly evolving market conditions, changes in consumer demand and the state of the COVID-19 response globally.”

Similar changes are being made at its U.S. and European mills. Last summer, Canfor permanently shut down its lumber mill in Vavenby, costing 172 people their job.

Canfor operates 12 other lumber mills, four pulp mills, and three pellet plants across the province, mostly in northern B.C.

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For the mills still operating, the company says it is following the recommendations set out by the provincial health officer. It has implemented physical distance between employees, increased sanitization practices, and had employees work remotely if possible.

“Our principle focus is ensuring the safety and well-being of our people through these unprecedented times, while taking the necessary actions to protect the long-term sustainability of our business,” said Canfor President and CEO Don Kayne.

In addition, the company has immediately reduced its capital spending by $20 million (CAD) for Canadian and American operations. Combined with current budget reductions for 2020, Canfor is projected to spend $100 million (CAD) less than last year.