Canfor cuts lumber production and capital spending due to COVID 19
Will be down about $100 million across lumber operations compared with 2019.
VANCOUVER — Canfor Corp. is cutting production and reducing capital spending as it deals with the COVID-19 outbreak.
The Vancouver-based lumber producer says it has reduced its planned capital spending by $20 million for Canadian and US operations.
Combined with an already lower capital budget for 2020, the company says the move means its capital spending this year will be down about $100 million across lumber operations compared with 2019.
Canfor also says that effective March 30 its Canadian lumber production will be curtailed by about 40% of about 70 million board feet over a three-week period. The cuts will be implemented across several BC sawmills through a combination of temporary plant curtailments and reduced operating hours.
In the US, Canfor Southern Pine operating capacity will be reduced by about 40% over or about 50 million board feet a four-week period through the implementation of variable shift schedules and reduced operating hours.
And in Europe, Swedish lumber production will be curtailed starting next week at two sawmills by 50% or about 17 million board feet over a four-week period.
“Our principal focus is ensuring the safety and well-being of our people through these unprecedented times, while taking the necessary actions to protect the long-term sustainability of our business,” Canfor chief executive Don Kayne said in a statement.