Canfor announced the company is making temporary reductions in production in British Columbia in response to challenging current market conditions. Production capacity will be reduced through a two-week curtailment beginning September 26 at the majority of Canfor’s solid wood facilities in British Columbia and will be followed by the resumption of reduced operating schedules until the end of the calendar year. Canfor expects the curtailments to result in a reduction of approximately 200 million board feet of production capacity.
“We are temporarily curtailing production in BC due to reduced market demand. We will leverage our global operating platform to prioritize the requirements of our customers,” Don Kanyne, president and CEO of Canfor, said in a prepared statement.
The curtailment announcement follows Canfor’s recent announcement of production reductions at its facilities in Sweden. Effective September 12, the reduced operating schedules in Sweden will result in a 15% decrease in production capacity and are anticipated to be in effect through the fourth quarter.
“Rising inflation and mortgage rates in Europe, which are expected to persist into the fall, is impacting demand for lumber and as a result, we are reducing production capacity,” Kayne said. “We are committed to continuing to meet the needs of our customers.
Vancouver, British Columbia-based Canfor will continue to assess and make adjustments to operating schedules based on changes in market demand. In addition to its European and Canadian operations, Canfor also has locations in North Carolina, South Carolina, Alabama, Georgia, Mississippi, Arkansas, and Louisiana.