Canfor Corporation
TSX : CFP

Canfor Corporation

December 08, 2006 17:31 ET

Canfor Announces Production Curtailments

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 8, 2006) - Canfor Corporation (TSX:CFP) announced today that it will be taking curtailments at certain wood product operations during the latter part of December as part of its holiday downtime. The impact on production as a result of this curtailment represents approximately 47 million board feet of lumber, six million square feet of plywood and 19 million square feet of oriented strand board (OSB).

In addition to these curtailments, Canfor announced that it would be partially curtailing production at its Tackama plywood operation in Fort Nelson, BC, indefinitely, due to the unfavorable market realities of the high Canadian dollar and depressed plywood prices.

Effective January 2, 2007, Tackama plywood production will move from its current 7-day operating format to a 5-day operating format. It is anticipated that the move will reduce the annual operating capacity by approximately 45 million square feet.

The curtailment will also result in the loss of approximately 80 positions. Canfor has begun the process to work with the union and employee group to minimize the impact on employees.

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 over 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 50.1% 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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