Interfor Announces Production Impacts in British Columbia Due to Log Supply Constraints
BURNABY, British Columbia, July 29, 2021 (GLOBE NEWSWIRE) — INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) announced today that it is expecting production disruptions at its B.C. Interior sawmills during the third quarter of 2021 due to the ongoing impacts of wildfires and other factors on log supply.
“The wildfires in the B.C. Interior and the related provincial state of emergency and government-mandated curtailment of all forest harvesting activities are expected to have a significant impact on Interfor’s operations in the next several weeks or more. This is an active situation, and we are closely monitoring the implications for our operations. We are also doing what we can to help, working cooperatively with the provincial wildfire service and local communities to support the firefighting efforts. At this time there are over 230 Interfor staff and contractors and over 90 pieces of contractor-owned heavy equipment dedicated to assisting the B.C. Wildfire Service in their efforts,” said Andrew Horahan, Senior Vice President of Western Operations at Interfor.
Based on current information, Interfor is expecting to curtail a minimum of 50 million board feet of production across its B.C. Interior operations in August, with the possibility of further downtime in September and beyond, depending on evolving weather conditions. The latest forecasts from the B.C. Wildfire Service indicate a strong likelihood of warmer and drier than normal conditions persisting across much of B.C. over the remainder of the summer and early fall. Over the past twelve months Interfor’s B.C. Interior operations produced approximately 725 million board feet of lumber, representing about 26% of the Company’s total production.
Interfor is also monitoring the evolving wildfire situation in the U.S. Northwest and related impacts on log supply to its operations in Washington and Oregon. Currently there are no immediate threats to Interfor’s employees or its operations, but the latest forecasts indicate that drier than usual weather is expected to be predominant over the region for August through October.
This release contains forward-looking information about the Company’s business outlook, objectives, plans, strategic priorities and other information that is not historical fact. A statement contains forward-looking information when the Company uses what it knows and expects today, to make a statement about the future. Statements containing forward-looking information in this release, include but are not limited to, statements regarding weather forecasts, wildfire threats, production capacity and other relevant factors. Readers are cautioned that actual results may vary from the forward-looking information in this release, and undue reliance should not be placed on such forward-looking information. Risk factors that could cause actual results to differ materially from the forward-looking information in this release are described in Interfor’s annual Management’s Discussion & Analysis under the heading “Risks and Uncertainties”, which is available on www.interfor.com and under Interfor’s profile on www.sedar.com. Material factors and assumptions used to develop the forward-looking information in this report include volatility in the selling prices for lumber, logs and wood chips; the Company’s ability to compete on a global basis; the availability and cost of log supply; natural or man-made disasters; currency exchange rates; changes in government regulations; the availability of the Company’s allowable annual cut (“AAC”); claims by and treaty settlements with Indigenous peoples; the Company’s ability to export its products; the softwood lumber trade dispute between Canada and the U.S.; stumpage fees payable to the Province of British Columbia (“B.C.”); environmental impacts of the Company’s operations; labour disruptions; information systems security; and the existence of a public health crises (such as the current COVID-19 pandemic). Unless otherwise indicated, the forward-looking statements in this release are based on the Company’s expectations at the date of this release. Interfor undertakes no obligation to update such forward-looking information or statements, except as required by law.
Interfor is a growth-oriented forest products company with operations in Canada and the United States. The Company has annual production capacity of approximately 3.9 billion board feet and offers a diverse line of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com.
Investor contact and further information:
Rick Pozzebon, Senior Vice President & Chief Financial Officer
Mike Mackay, Vice President of Corporate Development & Strategy