Canfor announces more COVID-19 capacity reductions
Canfor Corporation (TSX:CFP) announced today (April 9) it 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. 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,” said Canfor Corporation President and CEO Don Kayne.
The following changes to Canfor’s operating schedule are in addition to the capacity reductions announced on March 26. Canfor does not anticipate announcing further operating adjustments before releasing the company’s first quarter results.
“We 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 said in a media release.
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%.
“These reductions will be achieved by taking downtime at the majority of our British Columbia sawmills,” the company stated.
As the global impacts of COVID-19 continue to evolve, there is the potential that further adjustments to operating plans may be required, Canfor concluded.
Canfor operates mills in Elko and Radium Hot Springs (pictured – e-KNOW file photo).