Low lumber prices and the continuing softwood trade dispute with the US has forced Canfor Corporation to axe two mills with the loss of 220 jobs.
The Upper Fraser and Taylor sawmills in British Columbia will close in the third quarter as part of Canfor’s review of assets, costs and capital efficiency. The company is looking to save about C$150m a year.
Of 13 mills, Upper Fraser and Taylor were found to have the highest total costs. The former is negatively impacted by high timber and transport costs, while the latter is older and undersized, restricting its cost efficiency.
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“Difficult times call for difficult decisions ” |
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David Emerson, Canfor president and chief executive officer |
David Emerson, Canfor president and chief executive officer, said: “Difficult times call for difficult decisions. We have had to re-think everything we are doing to find ways to get our costs down and improve profitability.”
However, the company will spend C$40m upgrading the Ft St John and Prince George sawmills in order to enable them to move from two to three shifts and provide employment for about 100 workers from the axed mills.
