Canadian Forest Products giant Canfor Corporation says it will be restarting operations at its Chetwynd sawmill this spring.

The decision to restart operations is the result of a new labour agreement with the United Steelworkers and the recent company approval for a C$16m capital expenditure.

The agreement includes cost reductions that are tied to a profit-sharing component when markets improve.

The mill will return to operation with a single shift in a phased start-up. The initial restart will directly employ 70 employees; when the mill is in full operation it will employ more than 100 people.