VANCOUVER, British Columbia (News release) -- Canfor Corporation (TSX: CFP) announced that it will permanently close its Fox Creek sawmill in Fox Creek, Alberta. The decision reflects the ongoing challenges facing the operation including prolonged weak market conditions, persistent high US softwood lumber duties and tariffs, and fibre supply impacts due to recent wildfires and the conclusion of the mountain pine beetle management strategy.

The Fox Creek sawmill, destroyed by a fire in 2008, was rebuilt in 2011 as a single-shift operation to process the uplift in available timber as part of the Province of Alberta's preventative strategy to reduce the amount of pine beetle susceptible forests.

With support from Alberta's Ministry of Forestry and Parks, the Fox Creek sawmill accessed additional sources of fibre to help sustain the operation and support local economic activity. However, with the end of the pine beetle strategy and with wildfire-damaged timber now largely exhausted, there is insufficient fibre in the region to sustain the operation over the long term. Coupled with prolonged weak markets and punishing duties and tariffs, this facility is no longer viable.

"This is a difficult decision which we know will have a significant impact on our employees, their families, contractors, and the community," said Susan Yurkovich, President and CEO, Canfor. "This decision reflects the challenges facing our operation and does not diminish the dedication and contribution of our Fox Creek team. We are committed to helping those impacted navigate the transition ahead, including seeking opportunities for impacted employees at our other operations."

"Canfor has proudly operated in Alberta for more than 70 years, and we remain committed to pursuing opportunities to strengthen our operations in the province, including our Grande Prairie and Whitecourt sawmills and our value-added manufacturing facilities at Spruceland and the newly acquired PinkWood. Our goal is to ensure these operations can run fully and successfully compete in the global marketplace, while generating jobs and supporting communities across the province."

The closure of Fox Creek sawmill represents a reduction of 120 million board feet of production capacity. Operations at Fox Creek are expected to be concluded by late summer.