Canfor Corporation announced the permanent reduction of 150 million board feet of production capacity at its Plateau Sawmill. The company said the reduction is necessary to

resize the facility and align with the available, sustainable timber supply in the region following the impacts of the Mountain Pine Beetle infestation and other constraints. Canfor said the reduction in capacity will be achieved through a partial plant closure and the elimination of one of the three production lines in the mill.

“As the allowable annual cut has decreased in the region, it is necessary to resize the facility to align with the sustainable fiber supply,” Don Kayne, president and CEO of Canfor, said in a news release.

The capacity cut is expected to impact approximately 70 employees at the facility and is expected to take effect at the end of the second quarter of 2022 following the depletion of existing log inventory.

Canfor said it is investing $14 million in the Plateau facility to enhance manufacturing flexibility and efficiency of the two remaining production lines and position the smaller scale operation for long-term success. The company said following the completion of the capital investment and the closure of the production line in the second quarter, Plateau’s annual production capacity will be 370 million board feet.