Canfor Corporation

Canfor Corporation

September 22, 2010 22:30 ET

Canfor Announces the Closure of Its Clear Lake Lumber Operation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 22, 2010) - Canfor Corporation (TSX:CFP) announced today that it will be permanently closing its Clear Lake lumber operation located near Prince George, B.C., effective January 13, 2011. This decision stems from a combination of challenging markets due to the protracted downturn in new home construction in the U.S., and a lack of economic long-term fibre supply for the Clear Lake operation. 

Approximately 185 employees will be impacted by this decision, which will remove approximately 130 million board feet of production on an annualized basis. The closure is expected to result in a charge of approximately $12 million to the Company's net income for the third quarter.

"This decision in no way reflects the efforts of the workforce at Clear Lake. We would like to thank them for their efforts and we will strive to place impacted employees in other Canfor operations where possible," said Jim Shepard, Canfor President and CEO. "We remain committed to our highly-valued customer base, while being responsive to market demands and pressures."

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", "projects", "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 operations in BC, Alberta, Quebec, Washington state, and North and South Carolina. The Company produces primarily softwood lumber and also produces oriented strand board (OSB), 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 under the symbol CFP.

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