Canfor announced Tuesday it is permanently reducing its capacity at the Plateau Sawmill in Vanderhoof.
The company will be reducing the mill’s production capacity by 150 million board feet per year, through a partial plant closure and elimination of one of three production lines at the mill. The company anticipates 70 employees will be impacted by the reduction, which is expected to take effect at the end of the second fiscal quarter this year.
“As the allowable annual cut has decreased in the region, it is necessary to resize the facility to align with the sustainable fibre supply,” Canfor president Don Kayne said in a statement issued Tuesday. “I want to thank our Plateau employees for their ongoing dedication and hard work, and we are committed to providing comprehensive support to those employees impacted by today’s announcement, including offering jobs at other Canfor facilities. We will work to minimize the impacts this decision has on our employees, their families, our contractors and the community.”
The impact of the mountain pine beetle infestation has reduced the sustainable supply of timber of the in area serving the mill, the company’s statement said.
Canfor will establish a community support fund and work with the District of Vanderhoof to identify projects that will support the community.
The company also announced plans to invest $14 million into the Plateau mill to increase efficiency on the remaining two production lines. Once the upgrades are complete, the mill will have an annual production capacity of 370 million board feet.
