Canfor Announces Reduced Operating Schedules at Western Canada Sawmills Due to Global Supply Chain Crisis

According to the report, total printing-writing paper shipments decreased 24 percent in October compared to October 2019. U.S. purchases of total printing-writing papers decreased 21 percent in October compared to the same month last year. Total printing-writing paper inventory levels decreased two percent when compared to September 2020. U.S. purchases of uncoated free sheet (UFS) papers in October decreased 18 percent compared to last October while the inventory level decreased two percent compared to September 2020. UFS imports and exports both decreased compared to September 2019, down seven percent and 38 percent respectively. Coated free sheet (CFS) paper shipments decreased 16 percent compared to October 2019 while the inventory level decreased four percent compared to September 2020. CFS imports and exports both decreased compared to September 2019, down 34 percent and 14 percent respectively. U.S. purchases of coated mechanical (CM) papers in October decreased 40 percent compared to last October while the inventory level decreased four percent compared to September 2020. CM imports decreased 20 percent while exports increased 35 percent in September 2020. Uncoated mechanical (UM) paper shipments decreased 47 percent compared to October 2019 while the inventory level increased three percent compared to September 2020. UM imports and exports both decreased compared to September 2019, down 11 percent and 56 percent respectively.

Paper Excellence announced the permanent closure of the Mackenzie Pulp Mill located in Mackenzie, BC. Production at the mill was originally curtailed in June 2020 due to market impacts caused by COVID-19 and lack of local economic fibre. Since acquiring the Mackenzie mill in 2010, Paper Excellence has invested more than $360 million in the facility. However, despite these investments and the committed team of employees in Mackenzie, the facility’s small production capacity and the ongoing lack of local economic fibre meant the mill could not be globally competitive. Paper Excellence is restarting one of the paper machines in its Powell River mill in early May, investing with and establishing jointly beneficial partnerships with First Nations, and making a $13 million capital investment in the Port Alberni facility to diversify into higher-value markets. Furthermore, Paper Excellence is working towards making a significant capital investment in its Crofton facility and restarting its facility in Prince Albert, Saskatchewan.

365 days of operation and a trajectory that stands out for its excellent performance. One year after the start of activities for the first paper machine (PM) of the Puma II Project - the biggest investment in Klabin's history, which includes the construction of two paper machines with integrated pulp production -, the MP27 surpassed the mark of 330 thousand tons of Eukaliner® and Eukaliner White® produced and sold to the domestic and foreign markets, reinforcing the Company's vocation for the development of sustainable and innovative solutions in paper and paper packaging in Brazil. The machine, which has the capacity to produce 450,000 tons per year, surpassed the learning curve expected for the period. Developed and patented by Klabin, the Eukaliner® product range, produced at MP27, is the first in the world with kraftliner paper made 100% from eucalyptus fiber, which guarantees advantages such as the optimization of the forest area necessary for its production. (less resource for manufacturing the same volume of paper), in addition to properties such as a more robust structure, which allows for a reduction in the weight of corrugated cardboard packaging with increased resistance and better printing quality.