Canfor  has announced  it will close its Mackenzie sawmill indefinitely once the remaining log inventory at the facility has been processed.  The move will throw about 450 out of work and will  likely take effect in mid August.

This announcement comes as part of a cost management program currently underway at the company.

In a notice to employees, Canfor’s interim President and CEO, James Shepard says "Canfor’s Board has directed me to implement a program to reduce costs and position the company to weather this market downturn, which is the worst this industry has seen in decades.  The scope of this cost reduction strategy is not limited to our operations but also includes a review of how we, as a company, spend money and puts in place a process to identify additional cost savings."

Canfor lost $42.7 million dollars year, and expected that would  quadruple to $170 million this year.

Shepard went on to say  "Today we are announcing the indefinite closure of our Mackenzie sawmill but we will continue to monitor market conditions for evidence of a sustained recovery that would enable us to revisit the situation. This cost review process is not meant to be a one-time event and we will be announcing further decisions as we implement our plan.," 

Canfor has already started working with the union and employees  on  how the shut down will be handled and how  some of the savings  will be made in other areas:

• There will be no pay adjustments for salaried employees in 2007
• The employees share savings plan will be terminated
• There will be no payout of any salaried vacation banks
• Without profitability there will be no bonus payments in 2008 for 2007
• There will be a 25% payroll cost reduction in head office and support functions