Tag Archives: Canfor

A worker was killed this week at Canfor‘s Plateau mill west of Vanderhoof, British Columbia. The deceased was working as an independent contractor for Nechako Construction (a division of the BID Group) and had been performing maintenance work at the mill since November.

At this time, it appears the worker was crushed by an unsecured gate. The accident is being investigated by officials from the BID Group, Canfor, WorkSafeBC, the RCMP, and the Coroner’s office.

The worker has been identified as George Park, Jr. of Kamloops B.C.

Read more:
Deceased Worker Identified (Opinion250 News)
Man Dies In Industrial Accident At Plateau Mill West Of Vanderhoof (Opinion250 News)

Canfor Corporation will be proceeding with capital improvement projects totalling approximately $40 million in its sawmill facilities in the Kootenay region of British Columbia.

These investments represent the first major component of a multi-year capital investment program, aimed at enhancing productivity and cost performance in Canfor’s BC Southern Interior mill facilities.

The investments announced today are concentrated on the Radium Sawmill, located in the community of Radium Hot Springs, B.C.

Approximately $38.5 million will be invested in a new planer facility, the installation of a biomass energy system and modifications to the existing sawmill.

The balance will be invested at the company’s Canal Flats sawmill to improve drying capacity.

“These investments are critical to support the restart of our Radium division, which was indefinitely closed in May 2009,” said Don Kayne, Canfor President and CEO. “The fibre in the Kootenay region is amongst the best in the world, and these investments will secure our ability to make top-quality products here to supply global markets.”

The capital project at the Radium mill will commence in May 2012, with start up anticipated in the fourth quarter.

Source: Canfor Corp.

Canfor Corporation is reporting a net operating loss of $21.5 million in its first quarter of 2012.

In comparison, the company reported a net loss of $63.1 million in its fourth quarter of 2011.

Commenting on the quarter, Canfor’s President and CEO, Don Kayne, said, “While it was encouraging to see improved lumber prices in North America in the first quarter, the effect of weak low grade prices in China offset some of these gains. With inventories in China returning to more normal levels, we are anticipating an improvement in low grade lumber prices to China in the second quarter.” Mr. Kayne added that progress continued to be made with respect to improving the company’s cost performance, “We continue to see a trend of steadily improving productivity and unit conversion costs at our lumber operations, which reflects both our targeted strategic capital investments and a strong focus on continuous improvement.”

Canfor completed the acquisition of Tembec Industries Ltd.‘s southern British Columbia Interior wood products assets late in the first quarter. Commenting on the purchase, Mr. Kayne said, “This is a key acquisition that supports our long term strategy, particularly with respect to increasing our long term supply of high quality green fibre.”

First Quarter Analysis

Lumber markets were mixed in the first quarter of 2012, as a modest improvement in North American market conditions contrasted with a weaker market for lower grade products in China, where the effects of a significant inventory build ahead of the Lunar New Year and slower demand weighed heavily on prices through much of the quarter. U.S. housing activity saw a small increase, in part due to unseasonably mild weather, with housing starts for the quarter averaging 687,000 units (seasonally adjusted annual rate), up 3% from the previous quarter. Canadian housing starts also saw a modest increase from the previous quarter.

Despite an increase in North American prices, overall lumber sales realizations were largely unchanged from the previous quarter due to lower offshore realizations, particularly for low grade products. The average North American benchmark Western SPF 2×4 #2&Btr price increased US$28, or 12%, to US$266 per Mfbm, although increases for most other widths and dimensions were less marked. Prices for most SYP products saw solid increases. For Northern Bleached Softwood Kraft (“NBSK”) pulp, weak global demand saw prices fall from the previous quarter, with U.S. prices down US$50 per tonne. Compounding challenges for Canadian producers, sales realizations were negatively impacted by a stronger average Canadian dollar which was up over 2 cents, or 2%, from the previous quarter.

Lumber shipments were in line with the previous quarter at just under one billion board feet, while production was up 17%, reflecting continued improvements in productivity in the current quarter as well as downtime taken over the Christmas period in the previous quarter. Lumber unit manufacturing costs saw a decrease compared to the previous quarter, reflecting reductions in unit cash conversion costs, largely resulting from the increased production levels, and a reduction in unit log costs. However, results in the lumber segment were negatively impacted by lower prices for residual fibre products, reflecting lower prices for sawmill residual chips (related to lower NBSK pulp sales realizations).

Pulp shipment and production levels were well up from the previous quarter, mostly reflecting downtime taken in the prior quarter at Canfor Pulp’s Northwood pulp mill for capital upgrades. Improved pulp unit manufacturing costs in the current quarter reflected the higher production levels as well as lower residual chip costs.

Canfor completed further capital projects in the quarter as part of its $300 million, three-year strategic capital investment program at its lumber operations, including a planer upgrade at its Grande Prairie sawmill. This project was completed on time and on budget and is exceeding pro forma targets.

Looking ahead, the North American lumber market is projected to continue its modest recovery, while low grade prices to China are projected to see a marked improvement in the second quarter. The global softwood pulp market is anticipated to improve modestly through the second quarter.

Source: Canfor Corp.

Canfor has completed the acquisition of the Tembec Industries Ltd. southern British Columbia interior wood products assets consisting of the Elko and Canal Flats sawmills and approximately 1.1 million cubic metres of combined Crown, private land and contract annual allowable cut.

The transaction includes a long term residual fibre supply agreement for Tembec’s Skookumchuck mill.

“Canfor is pleased to welcome the former Tembec employees into the Canfor family and is looking forward to continuing the development of strong community and First Nations relationships,” said Don Kayne, President and CEO of Canfor. “This acquisition strengthens Canfor’s fibre position in BC while meeting the increasing needs of our highly valued global customers,” said Mr. Kayne.

The additional sawmill production will add approximately 420 million board feet to Canfor’s annual capacity bringing Canfor’s total capacity to more than 5 billion board feet. Canfor intends to make capital investments in excess of $50 million in the southern BC mill facilities over the next few years.

Source: Canfor

Canfor‘s director of public affairs and corporate communications, Christine Kennedy, said rumours that Canfor is anticipating an early break-up this year are not true.

Kennedy said the company is still hauling logs to all of its locations, including its Houston and Vanderhoof sawmills.

Canfor also wanted to clarify rumours that they were paying a reduced rate for logs.

Tom Lewis, regional manager at Canfor, clarified to the Vanderhoof Omineca Express that Canfor doesn’t directly deal with contractors over log prices.

“The price of logs received by the contractors was set through Babine Forest Products. Babine sets the rates with them.

“It could be based on how far away from the mill their wood is … it’s a decision that a contractor has to make whether to sell or not.

“I know that a bunch of contractors had wood in various states of processing in the bush, so Canfor went to Babine Forest Products and said ‘we will take as much wood as we can at target purchase rates’ … we buy wood through Babine Forest Products.”

Read more:
Canfor stumped by early break-up rumours (Vanderhoof Omineca Express)

Canfor Corporation has reported a net loss attributable to shareholders of $44.1 million in its fourth quarter of 2011, as compared to a net loss of $21.6 million for the third quarter of 2011, and a net income of $32.9 million for the fourth quarter of 2010.

For the year ended December 31, 2011, Canfor has reported a net loss attributable to shareholders was $56.6 million, compared to a net income of $81.4 million for 2010.

The company’s operating loss for the fourth quarter of 2011 was $64.0 million.

Commenting on the quarter, Canfor’s President and CEO, Don Kayne, said, “The fourth quarter provided challenges on several fronts. We saw weaker lumber and NBSK pulp realizations, related in part to the slowdown in demand from China, particularly for lower lumber grades, the ongoing slow U.S. recovery and overall global economic issues. To mitigate log cost pressures we have made significant strides in addressing trucker availability, while we continue to see positive trends in productivity, lumber recoveries and conversion costs from our capital investment and continuous improvement initiatives. We expect to see further benefits from our capital investment program in 2012.”

Looking ahead, the acquisition of Tembec Industries Ltd.‘s southern British Columbia Interior wood products assets is currently scheduled to close towards the end of the first quarter of 2012, subject to customary closing conditions including regulatory approval. Commenting on the acquisition, Kayne said, “This acquisition demonstrates our long-term confidence in the lumber sector, and aligns very well with our strategic focus.”

Source: Canfor (read full release)

Canfor Corporation introduced their new corporate website today.

Canfor said in a release today that their site has been redesigned to reflect the changing needs of the company and its stakeholders.

“We see a very bright future ahead for sustainable wood products, and our new website marks a first step in positioning the company to support our valued global customer base with the information they need as they meet growing demand for top-quality green products,” said President and CEO, Don Kayne.

Kayne is at the same time launching a new blog, Canfor’s World of Wood, which can be accessed from the website homepage. He will provide insights on Canfor’s initiatives at home and around the world to build recognition of the many merits of sustainable wood use.

You can visit Canfor’s new website at http://www.canfor.com.

Canfor has retired the tall crane that stands tall above Grande Prairie, Alberta’s southwest end.

The $3.5 million crane had operated for 25 years, but is no longer required since Canfor has implemented a cut-to-length program.

Now that the trees are cut in the bush to 16-20 foot lengths, it is easier, and safer, for Canfor to transport the wood to the Grande Prairie mill.

The crane will be dismantled within a year.

Read more:
Canfor crane retires after 25 years (Daily Herald-Tribune)

After a lengthy indefinite shut that followed the collapse of the United States residential housing market in 2008, Canfor Corporation has decided to close its historic Rustad Sawmill in Prince George, British Columbia and Tackama Mill in Fort Nelson, British Columbia.

Canfor has determined that the capital investment needed to bring the Rustad facility up to globally competitive operating standards is prohibitive. The company has instead focused a $300 million, 3-year capital investment plan on other facilities where smaller amounts of capital spending can realize significant improvements in cost performance and capacity.

Canfor acquired the Rustad Sawmill in 1999, and operated the facility for 10 years until slowing US lumber demand forced operations to cease in 2009. To that point, the mill had been in continuous operation for 62 years. The Tackama operation in Fort Nelson was part of Canfor’s 2004 acquisition of Slocan Forest Products, and at the time was BC’s largest plywood facility.

Although the decision has been made to cease manufacturing operations at these locations, Canfor is proud to have been part of the impressive legacy both plants had in their communities. Further information will be available over the next several weeks on plans to repurpose portions of the Rustad site for trades training and education.

“Canfor remains fully committed to the BC Interior, the communities of Prince George and Fort Nelson and to our employees,” said CEO, Don Kayne. “The Province of British Columbia, Government of Canada and BC forest industry are seeing tremendous success in the joint effort to develop new markets for BC wood products throughout the Asia Pacific. We believe that demand for green, environmentally sustainable building materials will continue to grow in our core United States market and around the world, and that a bright and prosperous future is ahead for the BC forest sector and forest communities.”

Rustad and Tackama employees will receive statutory payments and severance as negotiated with the United Steelworkers.

Source: Canfor

Canfor Corporation has signed an agreement to acquire Tembec Industries Ltd.’s southern British Columbia interior wood products assets, for a purchase price including working capital of $60 million.

Canfor will purchase Tembec’s Elko and Canal Flats sawmills and approximately 1.1 million cubic metres of combined Crown, private land and contract annual allowable cut.

The transaction will include a long-term agreement to provide residual fibre supply for Tembec’s Skookumchuck mill.

“This acquisition is a key step in our ongoing approach to strengthening Canfor’s fibre position in BC and deepens our ability to meet the needs of our valued global customers” said Canfor President and CEO Don Kayne. “We are very pleased to have worked with Tembec President and CEO Jim Lopez in advancing the strategic objectives of both companies.”

Over the next few years, Canfor intends to make capital investments in excess of $50 million to enhance productivity and cost performance in its BC Southern Interior mill facilities. The Elko and Canal Flats mills will provide an additional 420 million board feet to Canfor’s annual capacity, bringing Canfor’s total capacity in North America to greater than 5 billion board feet.

“Canfor is not only acquiring mills and fibre supply in this agreement, but also a talented employee and contractor group” said Don Kayne. “We expect to continue Tembec’s legacy of strong community and First Nations relationships. Canfor is readying itself to supply the growing demand from Asia Pacific markets that we, the Province of British Columbia and the Government of Canada have worked so hard to build, as well as key strategic customers in North America. Our decision to make a significant new investment in BC is premised on the province’s stable, cost-conscious policy environment and exceptional commitment to market development.”

Canfor expects to engage with the Forest Stewardship Council in relation to maintaining FSC certification of the forest tenures. When that process is complete, the company will have fibre certified to all three major North American forest certification systems, including the Canadian Standards Association, Sustainable Forestry Initiative and Forest Stewardship Council. This supply diversity strengthens Canfor’s position as one of the world’s leading suppliers of green building products.

The transaction with Tembec is subject to various customary closing conditions including regulatory approval and is expected to complete late in the first quarter of 2012.

Source: Canfor