Canfor has completed the C$65m acquisition of Tembec’s southern British Columbia interior wood products assets.
Acquiring the Elko and Canal Flats sawmills has added 420 million board feet of additional sawmill production to Canfor’s annual capacity, bringing Canfor’s total capacity to more than five billion board feet.
The deal included associated Crown tenures consisting of about 1.1 million m³ of combined Crown, private land and contact annual allowable cut.
Canfor will make C$50m of capital investment in the mills over the next few years.
Tembec intends to use the proceeds to pay down debt and for general corporate purposes.
