Canfor has shelved plans to build a sawmill in Maine following its recent merger with Slocan Forest Products.

The company had wanted to build a mill complex in northern Maine since early 2003, when it acquired Quebec-based Daaquam Lumber Inc to boost its presence in eastern Canada and the US north-east.

Canfor has also decided to use ships for transporting lumber because of a severe shortage of rail cars which has affected its sales in eastern North America.