Canfor Corp. (CFP) is closing the pulp line at its Prince George, British Columbia pulp and paper mill and eliminating about 300 jobs as demand continues to slump across North America.
The Vancouver-based forest products company said it expects to close the pulp line by the end of this year’s first quarter (March 31). However, the specialty paper facility at its Prince George mill will remain open and operate as usual.
The shut down of the pulp line will result in a reduction of 280,000 tonnes of market kraft pulp annually, and the loss of close to 300 jobs, said Canfor in a written statement.
The company said that it needs to adjust its operations in the wake of slowing demand for lumber and other forest products as the North American housing market declines due to higher mortgage rates.
Canfor is the latest in a string of British Columbia-based lumber producers to scale back operations in recent weeks.
Canfor’s stock is down 34% over the last year at $22.10 per share.
CFP
