Canfor Corporation (TSX: CFP) announced that its 77%-owned subsidiary, Vida AB, will permanently cease sawmill operations at its facilities in Urshult and Orrefors, Sweden.
“While this was a difficult decision, the closures are necessary given the ongoing imbalance between production capacity and access to fibre in southern Sweden,” said Karl-Johan Löwenadler, CEO of Vida AB.
“By concentrating production in fewer more productive and efficient facilities, we will strengthen Vida’s competitiveness and better position the business for the future.” Mr. Löwenadler added further.
The closures will reduce Vida’s annual lumber production capacity by approximately 265,000 cubic metres. Following the closures, Vida will operate 13 sawmills across central and southern Sweden, along with its other facilities in packaging, specialty finishing, and logistics.
Canfor is a global leader in the manufacturing of high-value low-carbon forest products including dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets and green energy. Proudly headquartered in Vancouver, British Columbia, Canfor produces renewable products from sustainably managed forests, at more than 50 facilities across its diversified operating platform in Canada, the United States and Europe. The Company has a 77% stake in Vida AB, Sweden’s largest privately owned sawmill company. Canfor shares are traded on the Toronto Stock Exchange under the symbol CFP.
Vida is a global supplier of manufactured products from sustainable Swedish forests. The group employs 1,800 people in 29 production plants, including 15 sawmills. Production is mainly focused on structural timber for a number of global markets. 88 percent of Vida’s sawn wood products are exported to Europe, USA, Australia, Africa and Asia. Sawn wood products are managed through our sales company, Vida Wood.
Their business activities also include manufacturing of packaging, animal bedding and pellets, biofuel and buildings.
The operations are strategically located close to forest landowners in Götaland and Svealand in Sweden. Vida buys most of its raw materials from private forest landowners through its own purchasing company, Vida Forest. A total of 5.8 million m3 solid under bark is purchased annually. More recently, their divisions have become highly specialised to reduce costs and maintain our strong position in the global market. Large investments have also been made during the last few years in logistics, their distributions centres and in sales offices in a number of countries.
Canfor is a global leader in the manufacturing of low-carbon forest products, delivering sustainable, high-quality wood solutions to markets worldwide.
“We deliver a diverse portfolio of sustainable lumber, pulp, paper and bioproducts, offering innovative solutions to meet evolving global needs.”
When it comes to sustainability, it is embedded throughout their operations, from the forest to the finished product. Their low-carbon forest products are harvested, sourced and manufactured in alignment with globally recognized forest certifications and sustainable forestry practices and standards.
The decision by Canfor Corporation’s 77%-owned subsidiary, Vida AB, to permanently cease sawmill operations at its Urshult and Orrefors facilities underscores the challenges facing the forest products industry in southern Sweden.
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