Canadian lumber firm Domtar Inc is to cut its sawmilling operation at Chapleau, Ontario, and lay off 64 workers because of a lack of wood.
The company is reducing to a single shift, which will mean the loss of 32.5 million board feet of lumber annually, as a result of a “substantial reduction” in the supply of affordable conifer saw logs. Domtar said it had exhausted its wood inventories, while newly created parks and protected areas had also affected harvest levels.
Domtar also blamed the strong Canadian dollar and US duties, plus reduced availability and higher prices for private replacement timber in the Chapleau area.
