Consumables

Canfor Announces the Indefinite Closure of its PolarBoard and Tackama Mills

Tuesday 22. January 2008 - Canfor Corporation (TSX:CFP) announced today that due to the continued poor wood product markets, a high Canadian dollar and record low oriented strand board (OSB) prices, it will be closing indefinitely its PolarBoard OSB and Tackama plywood mills in Fort Nelson, B.C. once existing log inventories are utilized and finished products shipped. This is expected to occur in April for the Tackama mill and during the summer for the PolarBoard operation.

Approximately 435 employees will be impacted by the decision. The Tackama mill has an annual capacity of 270 million square feet (3/8″ basis) of plywood and the PolarBoard mill has an annual capacity of 640 million square feet (3/8″ basis) of OSB production.

“As the market slump continues without evidence of a turnaround, Canfor must continue to adjust its production to address the reduced market demands,” said Canfor President and CEO Jim Shepard. “While implementing prudent production reductions, we are striving to continue to meet the needs of our key strategic customers,” he concluded.