Canfor Corporation, a Vancouver, British Columbia, Canada-based forest products company, plans a $40 million capital improvement at its sawmill facility in British Columbia's Kootenay region.
These investments represent the first major component of a multi- year capital investment program aimed at enhancing productivity and cost performance in Canfor's British Columbia Southern Interior Mill facilities, a company spokesman said.
The investment will be concentrated on the firm's Radium Sawmill, located in Radium Hot Springs, B.C. Approximately $38.5 million will be invested in a new planer facility, the installation of a biomass energy system and modifications to the existing sawmill. The balance will be invested at the company's Canal Flats sawmill to improve drying capacity.
"These investments are critical to support the restart of our Radium division, which was indefinitely closed in May 2009," said Don Kayne, Canfor President and CEO. "The fibre in the Kootenay region is amongst the best in the world, and these investments will secure our ability to make top-quality products here to supply global markets."
Canfor also has operations in Alberta and Quebec, Canada, as well as Washington State, and North and South Carolina. It produces softwood lumber along with strand board, remanufactured lumber products, bleached chemi-thermo-mechanical pulp and specialized wood products.
Canfor also has a 50 percent interest in Canfor Pulp Products Inc., one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper.