Canfor to Shutter Two British Columbia Sawmills
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After a lengthy, indefinite shutdown that followed the collapse of the U.S. residential housing market in 2008, Canfor Corp., Vancouver, B.C., Canada, says it will close its historic Rustad Sawmill in Prince George, B.C., and Tackama Mill in Fort Nelson, B.C..
Canfor determined that the capital investment needed to bring the Rustad facility up to globally competitive operating standards is prohibitive. The company has instead focused a $300 million, three-year capital investment plan on other facilities where smaller amounts of capital spending can realize significant improvements in cost performance and capacity.
Canfor acquired the Rustad Sawmill in 1999, and operated the facility for 10 years until slowing U.S. lumber demand forced operations to cease in 2009. To that point, the mill had been in continuous operation for 62 years. The Tackama operation in Fort Nelson was part of Canfor's 2004 acquisition of Slocan Forest Products, and at the time was British Columbia's largest plywood facility.
Further information will be available over the next several weeks on plans to repurpose portions of the Rustad site for trades training and education. Rustad and Tackama employees will receive statutory payments and severance as negotiated with the United Steelworkers.
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