Following a thorough review of operating conditions, including the persistent challenge accessing economic fibre, ongoing financial losses, weak lumber markets and increased US tariffs, Canfor Corporation announced the closure of its
Plateau and Fort St. John operations located in northern British Columbia.
These closures will impact approximately 500 employees and will remove 670 million board feet of annual production capacity from its BC operations.
Don Kayne, President and CEO made the following statement:
"Our company has proudly operated in BC for more than 85 years, supporting jobs and economic activity in communities around this province. During that time, we have always been prepared to manage through challenging times and market fluctuations, recognising the cyclical nature of our business. However, in recent years, increasing regulatory complexity, high operating costs and the inability to reliably access economically viable timber to support our manufacturing facilities has resulted in hundreds of millions of dollars of losses in our BC operations.
"The operating challenges we face have been further exacerbated by increases in the punitive US tariffs announced on August 13 - tariffs that are expected to more than double again next year. Continuing to operate under these conditions would prolong the punishing anti-dumping duties and put additional operations at risk. As a result, we are making the incredibly difficult decision to close our operations in Vanderhoof and Fort St. John.