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Canfor Pulp Products Inc. announces production curtailment

Canfor Pulp Products Inc. announced that production at the Canfor Pulp Limited Partnership's (the "Partnership") Northwood Pulp Mill has been curtailed to investigate a failure in one of its two recovery boilers.

June 26, 2012  By Dan Comand

There were no injuries reported in the incident but the number one recovery boiler has been shutdown to determine the cause of the malfunction. As a result, only one of the two production lines in the mill is currently operating.

The cost of repair and the duration of curtailment cannot be reliably determined until a detailed inspection of the facility is completed. However, based on a preliminary review, it is estimated that the curtailment will be for at least a three week duration with an estimated reduction in production of NBSK pulp of approximately 25,000 tonnes.

To mitigate the impact of the incident, management intends to continue operation of the second production line at the mill and will advance certain mill maintenance activities previously scheduled to be performed during a planned mill shutdown in September. Production at the Partnership’s Intercontinental Pulp Mill and Prince George Pulp and Paper Mill is not affected by the curtailment at Northwood.

Due to mitigation efforts by the Company, including property damage and business interruption insurance coverage, the curtailment is not expected to have a material impact on the financial condition of the Company or the Partnership.


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