Canfor is to close permanently its Clear Lake lumber operation near Prince George, British Columbia.

The decision stems from a combination of challenging markets due to the protracted downturn in new home construction in the US and a lack of economic long-term fibre supply for the operation.

Around 185 employees will be affected by the decision, which will remove about 130 million board feet of production on an annualised basis.

“We remain committed to our highly-valued customer base, while being responsive to market demands and pressures,” said president and CEO Jim Shepard.