Canfor Pulp Products to restrict production
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Vancouver, BC, based Canfor Pulp Products will curtail production at its Northwood Pulp Mill. This is only one of a package of actions the company announced in reaction to the Covid-19 pandemic and resulting economic uncertainty.
Besides the measure to protect its staff, Canfor announced it was postponing the planned extended spring maintenance shut at Northwood Pulp Mill until later this year, and instead will curtail the mill for three weeks during the period the turnaround was originally scheduled to occur. This will result in a reduction of approximately 35,000 metric tons of NBSK pulp production.
In addition, Canfor Pulp is reducing its planned capital expenditures for 2020 by $15m to $25m, representing a $78m decrease from 2019 capital expenditures. This reduction will be realized through the deferral of planned projects and suspension of in-progress initiatives that can be paused without significant impact.
Given the rapidly evolving Covid-19 situation, Canfor Pulp is closely monitoring potential staffing shortages, customer demand and volatility in the financial markets. There is the potential that further adjustments to operating plans may be required as a result.
