What's Happening?
Canfor Corporation has announced the permanent closure of its Estill and Darlington sawmills in South Carolina, effective August 2025. This decision comes after a prolonged period of weak market conditions
and financial losses, making continued operations at these facilities unsustainable. The closures will affect approximately 290 employees and reduce Canfor's U.S. lumber production capacity by 350 million board feet annually. Lee Goodloe, President of Canfor Southern Pine, emphasized the company's commitment to supporting affected employees through severance payments and potential redeployment opportunities within other operations.
Why It's Important?
The closure of these sawmills highlights the ongoing challenges faced by the lumber industry, particularly in the U.S. market. The reduction in production capacity could have broader implications for the supply chain and pricing of lumber products. Employees and local economies in South Carolina will be directly impacted, potentially leading to increased unemployment and economic strain in the affected communities. This move also reflects the broader industry trend of consolidating operations in response to market pressures and financial viability concerns.
What's Next?
Canfor has committed to assisting its employees during the transition, including exploring redeployment opportunities. The company will likely continue to assess its operational strategy in the U.S. to adapt to market conditions. Stakeholders, including local governments and industry partners, may seek to mitigate the economic impact on the affected communities. The broader industry may also see further consolidation or strategic shifts as companies navigate ongoing market challenges.
