Canfor to Spend $130M to Upgrade Urbana Plant

Canfor to Spend $130M to Upgrade Urbana Plant

Canfor Corp. of Vancouver said Thursday that it will spend about $130 million to upgrade and expand its sawmill and planer in Urbana (Union County).

The project by the publicly traded (TSX: CFP) forest products company is expected to begin in the third quarter and take about 18 months to complete.

The company said the investment will capitalize on "the abundant supply of high-quality fiber to enhance the manufacturing of high-value products, increase annual production at the facility by 115 million board feet, and result in a meaningful reduction in the facility’s cost structure."

The upgrades include what the company called major improvements to its planer, sawmill and log yard.

"We are excited to be investing in our Urbana facility with state-of-the-art technology to modernize the work environment for our valued employees and significantly increase our ability to produce sustainable wood products that will meet the growing needs of our customers," President and CEO Don Kayne said in a news release.

The facility will continue to operate while the modernization project is underway.