Canfor to Permanently Close 280,000 TPA Pulp Line

The closure of Canfor's Prince George Pulp and Paper will bring in a reduction of 280,000 TPA of market kraft pulp. While the speciality paper facility would sustain its operations.

January13,2023

Vancouver-based Canfor Pulp Products Inc. is going to permanently shut down the pulp line operations at its Prince George Pulp and Paper Mill. This closure will result in a reduction of 280,000 Tonnes Per Annum (TPA) of market kraft pulp. However, the speciality paper facility at the site will continuetooperate,aspertheirofficialrelease.

Mr. Kevin Edgson, President and CEO, Canfor Pulp, says, “In recent years, several sawmills have permanently closed in the PrinceGeorgeregionduetoreductionsintheallowableannual cut and challenges accessing cost-competitive fibre. This has had a material impact on the availability of residual fibre for our pulp facilities and we need to right-size our operatingplatform. As a result, we have made the very difficult decision to shut down the pulp line at Prince George Pulp and Paper Mill and willcontinuetooperatetheSpecialtyPaperfacility.”

Inthenextfewmonths,themillwillbefollowinganorderlywind downprocess.Thepulplineisprojectedtoshutdownbytheend of the first quarter of 2023.This is anticipated to impact approximately300positionsacrosstheorganizationbytheendoftheyear.

Mr. Edgson further added that, “We greatly appreciate our valued team members who have been helping to navigate a very challenging business environment. We understand and regret the impact today's announcement has on our employees, their families, the businesses that support our operations, andthelocalcommunity.”