Canfor Corporation is undertaking additional temporary reductions in production capacity due to the impact of COVID-19 on the price of lumber and demand.
“Canfor is experiencing a significant decrease in customer demand due to the global impacts of the COVID-19 pandemic, which has resulted in the difficult decision to take additional downtime in Canada,” says Canfor Corporation President and CEO Don Kayne in a news release.
“Our top priority continues to be supporting our employees through this challenging time. We are encouraged by the financial relief programs the provincial and federal governments are implementing to support all impacted workers."
The company says these reductions are in addition to the capacity reductions announced on March 26. Canfor says it does not anticipate announcing further operating adjustments before releasing the Company’s first quarter results.
However, Canfor says it will continue to assess operating rates on a weekly basis and will adjust as needed in response to the rapidly evolving market conditions, changes in customer demand and the global COVID-19 response.
The company says effective April 13, Canadian lumber production will be curtailed by approximately 100 million board feet through to May 1, resulting in a total production run rate of approximately 30 per cent.
These reductions will be achieved by taking downtime at the majority of British Columbia sawmills.
In U.S. and European Operations, the Canfor Southern Pine and Swedish facilities will continue to operate at less than full capacity with variable operating schedules and downtime, which the company says will be adjusted to align production with market demand as required.
These reduced operating rates are expected to remain in effect through May 1.
Canfor states that as the global impacts of COVID-19 continue to evolve, there is the potential that further adjustments to operating plans may be required.
