Prince George, B.C. - The Canfor Pulp Limited Partnership is preparing for  a reduction in fibre supply.

In a conference call today to  discuss the third quarter results, the  CEO and President  of the Partnership, Paul Richards advised  analysts whole log chipping has been increased by 10%-15% to offset  the possible impact of  sawmill curtailments.  Richards says it is likely  inventories will be increased  in order to have as much as a three week supply on hand as he expects  sawmills  will  soon announce downtime, and that Christmas  downtime will be longer than  normal.

The sawmill production curtailments are expected as a result of the  high dollar, and low demand from the U.S. home construction  industry. 

Richards also   says Northwood  is scheduled for a major  shutdown in the second quarter of 2008, Intercon will also be scheduled for a major shut down,  while Prince George Pulp and Paper is scheduled for a minor  shut down.

The Canfor Pulp Limited Partnership reported  3rd quarter sales of $228.9 million and net income of $33.2 million.  The results are down from  the previous quarter ( net income of $35.9million) because of the strong Canadian dollar.  Richards says the 3rd quarter was a very solid operating quarter thanks to the efforts of all employees "There have been record operating rates,  better productivity and lower energy costs,  all helping to offset the increase in fibre costs."  

Fibre costs increased 4% over the  3rd quarter.