About Canfor

Canfor Corporation operates as an integrated forest products company in Canada, Asia, the United States, Europe, and internationally. Segments The company operates through Lumber, and Pulp and Paper segments. Lumber The Lumber segment includes the company’s sawmilling and remanufacturing operations and the Pulp and Paper segment includes the kraft pulp, kraft paper, and bleached chemi-thermo mechanical pulp businesses of Canfor Pulp Products Inc. (CPPI), in which the company has a 54.8% interest. Eleven sawmills in British Columbia (including Mackenzie) and one in Alberta, with annual production capacity of 3.5 billion board feet. Three sawmills in South Carolina, three in Alabama, two in Georgia, one in North Carolina, one in Mississippi and one in Arkansas, US, with annual production capacity of 1.8 billion board feet. 49% interest in Elliott Sawmilling Co., Inc., with one sawmill in South Carolina with annual production capacity of 220 million board feet. 70% interest in Vida Group, including nine sawmills in Sweden with annual production capacity of 1.1 billion board feet and nine value-add facilities, which include the manufacture and sale of wood packaging, and housing and building components. Other operations include one finger-jointing facility in North Carolina, two laminating plants in Arkansas and Georgia, respectively, and a whole log chipping plant in British Columbia. Woodlands operations in British Columbia (excluding Vavenby) and Alberta with an allowable annual cut of 14.6 million m3, of which 11.0 million m3 directly supports lumber operations. 60% interest in Houston Pellet Inc. in Houston, British Columbia. 85% interest in two pellet plants located in Chetwynd and Fort St. John, British Columbia. Lumber sales and marketing. Pulp and Paper This segment owns 54.8% interest in three kraft pulp mills, one kraft paper mill and one bleached chemi-thermo mechanical pulp mill with annual production capacity of approximately 1.1 million tonnes of kraft pulp, 140,000 tonnes of kraft paper and 230,000 tonnes of bleached chemi-thermo mechanical pulp. Pulp and paper marketing. CPPI is a global supplier of pulp and paper products with operations based in Prince George and Taylor, British Columbia. In addition, CPPI generates power at all of its NBSK pulp mills and has long-term agreements with BC Hydro for electrical load displacement and the sale of power. The company also supplies Canfor also supplies CPPI with agreed annual quantities of hog fuel produced from specified sawmills. Timber Resources The company harvests timber under forest tenures held by it in British Columbia and west central Alberta, and has a total allowable annual cut of approximately 14.6 million cubic metres at December 31, 2019. In addition, through various third party business arrangements with other tenure holders including First Nations, the company also manages approximately 2 million cubic metres of volume throughout its operating areas in British Columbia, the majority of which is directed to its various manufacturing facilities. The company’s Canadian wood fibre requirements are also met by open market purchases and exchanges of logs on either a spot or contract basis. Lumber Markets and Distribution The company’s lumber segment markets lumber products primarily throughout North America, Europe and Asia, and also overseas. In addition to its own production, the company markets lumber produced from independent mills and offshore countries to complement its product line. The company’s Europe operations have established customers and markets in Europe, Australia, the Middle East, and North Africa. Other offshore markets consist of Korea, Taiwan, Southeast Asia, the Middle East, and Australia. CPPI uses various modes of surface transportation to distribute its pulp and kraft paper products. Strategy The key elements of the company’s business strategy include expanding geographical markets, increasing market share of value-added products and building strong long-term partnerships with valued customers; attaining world-class supply chain performance; developing an enterprise-wide culture of safety, innovation and engagement; capitalizing on attractive growth opportunities; optimizing its green energy business and positioning the company as a leading supplier of green, environmentally friendly building products; contributing to the climate change solution by supporting thriving forests that absorb carbon and producing sustainable wood products that store carbon; growing its green energy business; contributing to the climate change solution by producing sustainable pulp products that support the bioeconomy; and developing an enterprise-wide culture of safety, innovation and engagement. History Canfor Corporation was founded in 1938.