Vancouver-based Canfor Corp. (TSX:CFP) has officially closed two mills in B.C.’s Interior.
The Rustad Sawmill in Prince George and the Tackama Mill in Fort Nelson had been indefinitely shut down since the collapse of the U.S. residential housing market in 2008; however, the company announced the permanent closures yesterday.
In a press release, Canfor said it was too expensive to bring the Rustad facility up to globally competitive operating standards.
The company has instead focused a $300 million, three-year capital investment plan on other facilities where the return on investment is considered greater.
Canfor acquired Rustad in 1999 and operated the facility for 10 years until slowing U.S. lumber demand forced operations to stop in 2009.
The Tackama operation in Fort Nelson was part of Canfor’s 2004 acquisition of Slocan Forest Products and at the time was B.C.’s largest plywood facility.
Rustad and Tackama employees will receive statutory payments and severance as negotiated with the United Steelworkers.
Jennifer Harrison
@JHarrisonBIV