Canfor announces production cuts in B.C.

By Mark Nielsen
The Prince George Citizen
April 24, 2019
Category: Business & Politics
Region: Canada, Canada West

Canfor Corp. said Wednesday it will be temporarily curtailing operations at all BC dimension mills effective this Monday due to low lumber prices and the high cost of fibre. The curtailment will reduce Canfor’s production output by approximately 100 million board feet, the company said. The curtailment will translate into a week of downtime for all of Canfor’s B.C. sawmills and an additional week for its Mackenzie operation. …It was the latest in a series of curtailments that Canfor began late last year. West Fraser and Conifex have also made similar moves. …Hakan Ekstrom of World Resources International said sawmills across North America saw their profit margins fall substantially during the second half of 2018 after reaching record highs over the second quarter. …”Sawmills saw their gross margins plunge to unprofitable levels and many companies decided to take market-related downtime in late 2018 and early 2019.”

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