Interfor announced its reducing lumber production across North American operations by around 10 per cent.

INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) announces reduction of 175 million board feet  across all regions of North America in response to weak market conditions.

The B.C.-based forest products company announced in a Wednesday, May 1 news release it plans to reduce its lumber production by approximately 175 million board feet between May and September of this year, which is just under 10 per cent of its normal operating stance.

This reduction is a temporary move, the release stated, which will impact all of Interfor’s operating regions through reduced operating hours, prolonged holiday breaks, reconfigured shift schedules and extended maintenance shut-downs.

The Grand Forks Gazette contacted Svetlana Kayumova, Senior Manager of Interfor’s Corporate Affairs & Communications for comment. She replied in an email the company was declining comment on this matter, adding the company was unable to disclose any further information on this announcement.

The release stated the reason for this reduction is due to persistently weak market conditions.

“Benchmark lumber prices have continued to weaken since the beginning of the year, from already unsustainably low levels, as available supply has outstripped product demand,” stated Ian Fillinger, Interfor’s President & CEO. “This action will help bring Interfor’s production and the needs of our customers back into balance. It will also help to keep inventory levels in check as we move into the summer.”

The company continues to monitor market conditions across all of its operations, adjusting production plans as needed, it stated.

The release cautioned some of these statements are forward-looking based on current market conditions and the company’s plans. It cautioned readers that actual results may vary from forward-looking statements in the announcement.
 
Source: financialpost.com