Canfor Corporation Announces the Closure of Quesnel Sawmill and Tenure Exchange Agreement with West Fraser

Oct 24, 2013

Canfor Corporation (TSX: CFP) announced today that it will permanently close its sawmill located in Quesnel, British Columbia.  The Company anticipates that the closure will occur in March, 2014.  Canfor’s 209 Quesnel-based employees will be offered positions elsewhere in the Company.

Canfor has entered into an agreement with West Fraser Mills Ltd. for an exchange in forest tenure rights.  Canfor is exchanging 382,194 m3 of replaceable forest licence allowable annual cut in the Quesnel Timber Supply Area as well as 53,627 m3 of replaceable forest licence allowable annual cut in the Lakes Timber Supply Area with West Fraser in exchange for receiving 324,500 m3 of replaceable forest licence allowable annual cut in the Morice Timber Supply Area.  The companies are also exchanging non-replaceable licenses and undercut volumes. 

“The timber availability in the Quesnel region following the mountain pine beetle infestation unfortunately leaves us unable to continue operation of our Quesnel sawmill,” said Don Kayne, President and CEO of Canfor Corporation. “The additional fibre we have been able to secure in the exchange agreement with West Fraser enhances the fibre requirements for our Houston facility. We are committed to minimizing the impacts of this closure on our Quesnel employees.”

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