Canfor Announces Restructuring to Position Alabama Operations for the Future

Canfor Corporation announced that it will optimize its footprint in southern Alabama by permanently closing its Jackson facility and expanding production at its Fulton facility with a second shift. These steps, together with the previously announced construction of a new, state-of-the art greenfield sawmill in Axis, will grow the Company’s regional manufacturing platform by 100 million board feet of production capacity and consolidate operations at modern facilities that are well positioned to be competitive for the long-term.

“Canfor is working to optimize our operational footprint in southern Alabama to ensure we have well-capitalized and highly efficient manufacturing facilities,” said Lee Goodloe, President, Canfor Southern Pine. “To this end, we are making the difficult decision to close the aging Jackson mill at the end of June, while expanding production at our nearby Fulton facility. We recognize this decision impacts our Jackson employees and community. However, we expect the majority of our employees will have an opportunity at either our expanded operation in Fulton, which will add a second shift, or in Axis once the new facility opens later this year.”

“Canfor’s recent investments in southern Alabama demonstrate our commitment to Clark County and build upon a proud history of operations in the region,” added Goodloe. “We appreciate our employees, and our strong relationships with suppliers, contractors, partners, and customers. Consolidating our operations in southern Alabama in modernized facilities – with leading technologies and innovation – will enable Canfor to better serve our local and global customers while providing more sustainable jobs and improved working conditions for our employees.”

About Canfor Corporation

Canfor is a global leader in the manufacturing of high-value low-carbon forest products including dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets and green energy. Proudly headquartered in Vancouver, British Columbia, Canfor produces renewable products from sustainably managed forests, at more than 50 facilities across its diversified operating platform in Canada, the United States and Europe. The Company has a 70% stake in Vida AB, Sweden’s largest privately owned sawmill company and also owns a 54.8% interest in Canfor Pulp Products Inc. Canfor shares are traded on The Toronto Stock Exchange under the symbol CFP. For more information visit canfor.com.

Contact:

Rosemary Silva – Manager, Community Relations – communications@canfor.com – (604) 661-5225

Source: Canfor Corporation