Roughly 70 sawmill workers in Vanderhoof will lose their jobs later this year, when Canfor Corp. (TSX:CFP) permanently reduces production at its Plateau sawmill.
Canfor announced it will permanently reduce production at the mill by 150 million board feet and “resize” the mill to operate at lower production levels. The company plans to eliminate one of three production lines. The company blamed a declining annual allowable cut for the decision.
“As the allowable annual cut has decreased in the region, it is necessary to resize the facility to align with the sustainable fibre supply,” Canfor CEO Don Kayne said in a press release.
“I want to thank our Plateau employees for their ongoing dedication and hard work, and we are committed to providing comprehensive support to those employees impacted by today’s announcement, including offering jobs at other Canfor facilities. We will work to minimize the impacts this decision has on our employees, their families, our contractors and the community.”
The move to shut down one production line will require resizing the plant, which the company said will take place in the second quarter this year. Canfor said it will invest $14 million in the sawmill “to enhance manufacturing flexibility and efficiency of the two remaining production lines and position the smaller scale operation for long-term success.”
"Canfor will establish a community support fund and will work with the District of Vanderhoof to identify projects and initiatives that will best support the community through the transition," the company said.
