Canfor Corporation

Canfor Corporation

December 05, 2007 05:00 ET

Canfor Announces Indefinite Closure of its Chetwynd Sawmill

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 5, 2007) - Canfor Corporation (TSX:CFP) announced today that due to the continued poor lumber markets and a high Canadian dollar, that it will be closing its Chetwynd sawmill indefinitely once existing log inventories are utilized and finished products shipped. This is expected to occur late January-early February of 2008.

Approximately 188 employees will be impacted by the decision and will be indefinitely laid off. The mill has a capacity of 244 million board feet of production on an annualized basis.

"This announcement is in keeping with the company's decision to re-structure its production schedules to reflect the demands of the market place and ensure the needs of key customers continue to be met," said Canfor President and CEO Jim Shepard.

Forward Looking Statements

Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and the Company assumes no obligation to update such information to reflect later events or developments, except as required by law.

Canfor is a leading integrated forest products company based in Vancouver, British Columbia (BC) with interests in 33 facilities in BC, Alberta, Quebec, Washington state, and North and South Carolina. The company is the largest producer of softwood lumber in Canada while also producing oriented strand board (OSB), plywood, remanufactured lumber products and specialized wood products. Canfor also owns a 50.2% interest in Canfor Pulp Limited Partnership, which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange (TSX:CFP).

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