BURNABY, B.C. – Interfor Corp. is selling its three manufacturing facilities in Quebec and closing its corporate office in Montreal as the lumber producer plans to leave the province and focus on other parts of the company.
Interfor chief executive Ian Fillinger says the decision to exit its Quebec operations was influenced by recent developments that have restricted the availability of economic fibre, including record forest fires in 2023.
The company says it has signed a deal to sell its sawmills in Val-d’Or and Matagami as well as its Sullivan remanufacturing plant in Val-d’Or, along with all associated forestry and business operations, to Chantiers Chibougamau Ltée (CCL) for $30 million in cash.
Interfor and CCL will also enter into a multi-year contract for the supply of machine stress rated lumber to Interfor’s I-Joist engineered wood products facility in Sault Ste. Marie, Ont.
Interfor says it expects to take an impairment charge in its third quarter associated with the announcement.
The sale does not include any countervailing or anti-dumping duty deposits related to the ongoing U.S.-Canada softwood lumber trade dispute.
This report by The Canadian Press was first published Oct. 16, 2024.
Companies in this story: (TSX:IFP)
