Canfor Provides Update on Operating Schedules for Western Canadian Sawmills

Canfor Corporation (the “Company”) is announcing the continuation of reduced operating schedules at its Western Canadian sawmills due to the ongoing global supply chain challenges. The Company has been operating at approximately 80% of production capacity since late March 2022.

In addition, the Company will be implementing two weeks of rotating downtime across its primary sawmills in July and August, which will help align production capacity with the sustainable timber supply and transportation availability. The Company will use this downtime to complete maintenance projects and other site activities to help mitigate the impact on employees.

These capacity reductions are expected to result in an incremental impact of approximately 275 million board feet by the end of August, in addition to the 100 million board feet reduction previously announced on March 30th.

“The global supply challenges are continuing to significantly limit our ability to transport products to our customers and our inventory levels remain very high. We are working to bring our inventory levels back into balance by reducing our production, while also working to meet the needs of our customers,” said Don Kayne, President and CEO, Canfor.

The Western Canadian sawmills are anticipated to resume normal operating schedules following their respective summer downtime. The Company will continue to assess and make adjustments to operating schedules as supply chain conditions evolve.

About Canfor Corporation

Canfor is a leading integrated forest products company based in Vancouver, British Columbia (“BC”) with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi, Arkansas and Louisiana, as well as in Sweden with 70% interest in Vida Group. Canfor produces primarily softwood lumber and also owns a 54.8% interest in Canfor Pulp Products Inc., which is one of the largest global producers of market Northern Bleached Softwood Kraft Pulp and a leading producer of high performance kraft paper. Canfor shares are traded on The Toronto Stock exchange under the symbol CFP. For more information visit canfor.com.

Contact:

Michelle Ward – Senior Director, Communications & GR – communicaitons@canfor.com – (604) 661-5225

Source: Canfor Corporation