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Canfor permanently closes pulp line at Prince George facility

Canfor Pulp Products has announced it is permanently closing the pulp line at its mill in Prince George, B.C., resulting in a reduction of 280,000 tonnes of market kraft pulp annually, and the loss of about 300 jobs.

The decision follows an extensive analysis of its operating footprint and the long-term supply of economic residual fibre, the company said in a statement. The specialty paper facility at the site will continue to operate.

“In recent years, several sawmills have permanently closed in the Prince George region due to reductions in the allowable annual 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 operating platform. As a result, we have made the very difficult decision to shut down the pulp line at Prince George Pulp and Paper Mill and will continue to operate the Specialty Paper facility,” said Kevin Edgson, president and CEO, Canfor Pulp.

Over the next few months, the company will be following an orderly wind down process. The pulp line is expected to close by the end of the first quarter of 2023 and is anticipated to impact approximately 300 positions across the organization by the end of the year.

“We greatly appreciate our valued team members who have been helping to navigate a very challenging business environment,” said Edgson. “We understand and regret the impact today’s announcement has on our employees, their families, the businesses that support our operations, and the local community. We will be working in the weeks and months ahead to support our employees through this transition.”

Earlier this month, Canfor extended the previously announced temporary sawmill curtailments in B.C., citing weak market conditions and the lack of available economic fibre.

In December last year, the company announced the immediate four-week curtailment of its Intercontinental Pulp Mill.