(RTTNews) - Canfor Corp. (CFP.TO), a Canadian integrated forest products company, said on Tuesday that its 77 percent-owned subsidiary, Vida AB, will permanently shut down its sawmill operations in Urshult and Orrefors, Sweden.
The company said that the closures are expected to reduce Vida's annual lumber production capacity by around 265,000 cubic metres. Following the shutdowns, Vida will continue operating 13 sawmills across central and southern Sweden, along with its packaging, specialty finishing, and logistics facilities.
Commenting on the developments, Karl-Johan Löwenadler, CEO, Vida AB, said, "While this was a difficult decision, the closures are necessary given the ongoing imbalance between production capacity and access to fibre in southern Sweden. By concentrating production in fewer, more productive and efficient facilities, we will strengthen Vida's competitiveness and better position the business for the future."
On the Toronto Exchange, CFP.TO ended Friday's trading at C$11.94, down 1.4 percent.
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