Canfor Corp. (CFP) is the latest lumber company to reduce its Canadian production as the housing market slumps due to rising interest rates.
The Vancouver based forest products company said that it plans to scale back production of all its solid wood materials in British Columbia and Alberta.
Specifically, Canfor said it will reduce production by about 150 million board feet in December and January.
The reduced production will begin on December 19 and range from one to four weeks across the company’s entire Canadian operations.
Canfor said it will continue to adjust its operations to align with market conditions and anticipates that most of its facilities will be below full capacity throughout 2023.
On December 1, rival lumber producer Western Forest Products (WEF) announced that it plans to reduce its lumber production for the remainder of this year due to a weakening market for wood products.
Canfor’s stock is down 26% this year at $23.15 per share.
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