Canfor Extending Temporary Curtailments in B.C.

The Board of Directors of Canfor Corporation approved the construction of a new, state-of-the-art sawmill in Washington, Georgia. The new sawmill, which will cost approximately US$120 million and have a production capacity of 275 million board feet, will employ best-in-class mill technology, capitalizing on an excellent fibre resource in the region to produce high-value dimension and specialty lumber products. Strategically located near the Company’s existing glulam facility in Washington and the larger population centers in Athens and Augusta, the new mill will be able to draw on a strong and skilled employee base. Construction will commence in the second quarter of 2018, with the official start-up projected for the third quarter of 2019. At full run rates, assuming 2017 market pricing, the sawmill is forecast to generate annual EBITDA of approximately US$35 million. Click Read More below for additional information.

Sappi North America, Inc., a leading producer and supplier of diversified paper, packaging products and dissolving pulp, today announced that its Spectro® paperboard line has been certified as compatible with all HP Indigo Digital Offset Color™ presses. As part of the certification process, the company added new Digital substrates to its C1S and C2S lines to further expand its offerings for custom, short-run packaging and commercial printing applications. The new Spectro Digital for HP Indigo C1S and C2S products obtained the highest three-star rating based on runnability, adhesion and blanket compatibility from the Rochester Institute of Technology's Printing Applications Lab as a part of the HP Indigo Media Certification Program. Each product exhibited a high percentage of ink adhesion and exhibited excellent runnability with a high level of blanket cleanliness during normal testing intervals. The adhesion levels for all calipers and sides of the board, both coated and uncoated, exhibited side-to-side consistency and tested at photo recommended levels.

In the near future, certain uncoated groundwood paper products imported into the United States from Canada may be subjected to U.S. countervailing (CVD) and/or anti-dumping (AD) duties. These duties arise from petitions made by North Pacific Paper Company (NORPAC), a U.S.-based pulp and paper manufacturer, to the U.S. Department of Commerce and the U.S. International Trade Commission that allege Canada’s UGW paper exports are unfairly priced and/or that Canadian federal and provincial governments subsidize domestic producers – including Catalyst – thereby placing U.S. manufacturers of uncoated groundwood paper at an unfair disadvantage. I am writing to advise that Catalyst intends to implement price surcharges on our uncoated groundwood paper products we import into the USA that are subject to these CVD and AD duties. These surcharges will directly mirror the charges imposed on Catalyst by the U.S. Government. We will inform you of the level of Surcharge as soon as it becomes available. Click Read More below for additional information.