Canfor Announces JV with Tangshan Caofeidian Wood Industry of China

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Canfor Corp., Vancouver, B.C., Canada, has agreed to form a 50/50 joint venture with Tangshan Caofeidian Wood Industry Co. of China (TCW) to review the potential construction of a secondary manufacturing facility to be located at the deep water Caofeidian Port Tangshan City, Hebei Province, China. The parties will develop a business plan over the next several months to determine the capital necessary to construct the plant. Canfor will enter into a supply agreement with the joint venture.

"This is a strategic partnership that demonstrates our ongoing commitment to the Chinese market for lumber," said Canfor President and CEO Don Kayne. "Building a secondary manufacturing facility at the Caofeidian Port will allow us to work closely with customers to grow the market and expand the range of applications for Canfor products in China."

Canfor is an integrated forest products company with operations in British Columbia, Alberta, and Quebec in Canada, and North Carolina, South Carolina, and Alabama in the U.S. Canfor produces bleached chemi-thermomechanical pulp and specialized wood products, as well as primarily softwood lumber. Canfor also owns a 50.4% interest in Canfor Pulp Products Inc., one of the largest producers of northern softwood kraft pulp in Canada and a producer of high performance kraft paper.

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