Canfor Announces Permanent Closure of Polar Sawmill and Suspension of Planned Reinvestment in Houston, BC

Overview • Q2 2022 reported operating income of $532 million; quarterly sales of $2.2 billion • Downward pressure on North American lumber market fundamentals; significant decline in US-dollar lumber benchmark pricing; uptick in European market pricing largely tied to traditional quarterly lag • Improved lumber & pulp shipments despite ongoing transportation challenges • Shareholder net income of $374 million, or $3.02 per share

The verification that UPM Plywood’s products have not caused deforestation or forest degradation and that the commodities used in UPM Plywood’s products have been produced in accordance with the relevant legislation will be based on a due diligence process. UPM Plywood is a so-called downstream operator manufacturing its products from other products that have already undergone due diligence in accordance with EUDR. Therefore, UPM Plywood’s due diligence process consists of referring to due diligence statements submitted previously in the supply chain and verifying that its suppliers have adequate due diligence systems in place. Prior to placing its products on the market, UPM Plywood will submit a DDS to the EU Information System Traces. The EU information system will produce an associated reference number that UPM Plywood will share with its customers. The chart below describes the basics of EUDR implementation in UPM Plywood. The supplier of wood or other relevant commodities provides the first DDS with geolocation information to Traces and gets associated reference numbers (REF) from the system.

Reality is setting in for about 225 paper mill workers in Camas. Layoffs announced in November 2017 are now underway. Many losing their jobs have worked at the mill for decades. Workers expressed a lot of sadness, grieving the loss of jobs they spent decades doing. The decision is forever changing the city that was built around it. “There's been a paper mill in Camas for 138 years,” Korhonen said. “We were proud to make paper in Camas." Click Read More below for additional information.