Canfor's (CFP.TO) 77%-owned unit, Vida AB, will permanently close its sawmill operations in Urshult and Orrefors, Sweden, it said over the holiday weekend.
The closures will reduce Vida's annual lumber production capacity by about 265,000 cubic meters, it said. Vida will operate 13 sawmills across central and southern Sweden following the closures, along with its other facilities in packaging, specialty finishing, and logistics.
"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 Vida AB Chief Executive Karl-Johan Lowenadler. "By concentrating production in fewer more productive and efficient facilities, we will strengthen Vida's competitiveness and better position the business for the future."
Shares of Canfor closed down 1.4% to $11.94 on Friday on the Toronto Stock Exchange.