Canfor Limiting Production At Taylor Pulp Mill Due To Transport Issues - InvestingChannel

Canfor Limiting Production At Taylor Pulp Mill Due To Transport Issues

Canfor Pulp Products (CFP) says its is limiting production at its Taylor Pulp Mill in British Columbia for a minimum of six weeks due to transportation problems that have hurt its ability to ship products.

The company says inventories at the mill in northeastern British Columbia that produces bleached chemi-thermo mechanical pulp (BCTMP) have reached capacity. The production limits will cut production by at least 25,000 tonnes of product.

Canfor Pulp said in a news release that increasing fibre costs and a weaker longer-term outlook for BCTMP markets, combined with the current logistics issues, have created a challenging business environment for the mill.

The Taylor mill has annual production capacity of 230,000 tonnes of BCTMP. Canfor Pulp also owns and operates three mills in Prince George, British Columbia, with a total capacity of 1.1 million tonnes of premium reinforcing northern bleached softwood kraft pulp and 140,000 tonnes of kraft paper.