Canfor Pulp Plans More Downtime
By 250 News
Wednesday, February 18, 2009 09:06 AM
Prince George, B.C. – Canfor Pulp Limited Partnership employees can expect more downtime this year as the Partnership aims to match supply with market demand.
Following a fourth quarter net loss of $26 million dollars, the Partnership has announced there will be downtime this year to remove 45 thousand tonnes of pulp from the market:
First Quarter: already removed 13 thousand tonnes
Second Quarter: Curtailments to remove a further 11 thousand tonnes
Third Quarter: No Curtailments
Fourth Quarter: Curtailments to remove 21 thousand tonnes
The Partnership has also decided to reduce its capital expenditures this year to $15 -$20 million dollars, down from the usual $30 million. A cost savings plan has been put in place to save a further $10 million through lower chemical and energy usage as well as reductions in all spending.
The Partnership is hopeful of soon receiving the final insurance payment for the fire of January of 2008 which destroyed the chip handling system at PG Pulp. The new chip handling system was in operation in November and cost $12.7 million, of that, $9.5 million was covered by insurance. The full claim for equipment and business interruption is $31.3 million and 87% of that amount has been recovered.
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