Canfor Corporation

Canfor Corporation

January 18, 2008 09:00 ET

Canfor Announces the Indefinite Closure of its PolarBoard and Tackama Mills

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 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.

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 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).

Contact Information