$4.9 Million Investment in Kedgwick, NB

Following extensive analysis of its operating footprint and the long-term supply of economic residual fibre, Canfor Pulp Products Inc. (TSX: CFX) is announcing the decision to permanently close the pulp line at its Prince George Pulp and Paper Mill, which will result in a reduction of 280,000 tonnes of market kraft pulp annually. The Specialty Paper facility at the site will continue to operate. “In recent years, several sawmills have permanently closed in the Prince George region due to reductions in the allowable annual cut and challenges accessing cost-competitive fibre. This has had a material impact on the availability of residual fibre for our pulp facilities and we need to right-size our operating platform. As a result, we have made the very difficult decision to shut down the pulp line at Prince George Pulp and Paper Mill and will continue to operate the Specialty Paper facility,” said Kevin Edgson, President and CEO, Canfor Pulp. Over the next few months, the Company will be following an orderly wind down process. The pulp line is expected to close by the end of the first quarter of 2023 and is anticipated to impact approximately 300 positions across the organization by the end of the year.

Canfor Corporation is announcing an extension of sawmill curtailments in British Columbia (B.C.) due to ongoing weak market conditions and the lack of available economic fibre. The production capacity will be reduced through two-week curtailment extensions in January at select solid wood facilities in B.C. This will remove approximately 21 million board feet in addition to the 150 million board feet previously announced on December 5, 2022. The Company will continue to adjust operating rates to align with market conditions and the available supply of economically viable timber.

The Navigator Company announced today that it will increase paper prices in Europe from 6% to 9%. This increase will be effective for all dispatches from 10th of May, and the Company will inform shortly about the details of the new prices to be applied by product. This decision was taken following not only further worldwide cost increases in pulp, chemicals and logistics, with structural effects in the profitability of the industry in Europe and across the globe, but also a robust demand for Navigator’s products and brands during late 2020 and the first months of 2021.