Canfor and Canfor Pulp Jointly Release 2022 Sustainability Report

Total European shipments of graphic papers in July 2020 were down 26.4% vs. July 2019 and are down 20.0% year-to-date. Total European shipments of newsprint in July 2020 were down 23.7% vs. July 2019 and are down 17.0% year-to-date. Total European shipments of sc-magazine in July 2020 were down 23.4% vs. July 2019 and are down 19.9% year-to-date. Total European shipments of coated mechanical reels in July 2020 were down 38.5% vs. July 2019 and are down 27.8% year-to-date. Total European shipments of uncoated mechanical (improved & others) in July 2020 were down 16.6% vs. July 2019 and are down 9.3% year-to-date. Total European shipments of coated woodfree in July 2020 were down 36.6% vs. July 2019 and are down 26.0% year-to-date. Total European shipments of uncoated woodfree in July 2020 were down 17.1% vs. July 2019 and are down 15.5% year-to-date.

Paper Excellence Canada announced that 1057863 B.C. Ltd, Northern Pulp Nova Scotia, Northern Timber Nova Scotia and other related non-operating affiliates (collectively, “Northern Pulp”) have obtained an initial order under the Companies’ Creditors Arrangement Act (“CCAA”). The initial order stays proceedings against Northern Pulp in order to provide it with an opportunity to restructure its business and financial affairs. Paper Excellence Canada has not sought relief in the CCAA proceedings. Northern Pulp owns a pulp mill in Pictou County, Nova Scotia. The pulp mill, which had been operational since 1967, was forced to stop production by January 31, 2020, after the Province of Nova Scotia’s decision to require Northern Pulp to cease using the Boat Harbour Effluent Treatment Facility (BHEFT). This left the mill with no ability to treat or transport pulp effluent. Since January, Northern Pulp has been conducting a safe and environmentally sound hibernation of the mill, which would allow it to reopen in the event a proposed new Effluent Treatment Facility (ETF) receives the necessary approvals.

As part of its forest land optimisation, Stora Enso has signed an agreement to divest forest assets located in southern Sweden to the forestry fund Silvestica Green Forest AB. The total area of forest land in the transaction is approximately 5 200 hectares. The selling price is approximately SEK 940 million (EUR 90 million). The transaction is in line with Stora Enso’s policy of divesting non-core assets. The forest areas are located geographically far away from Stora Enso’s other forest lands, which limits the scale benefits. The forest land divestment has no impact on Stora Enso’s nearby Hylte Mill, which uses other wood supply sources for its production. The forest land corresponds to less than 0.5% of Stora Enso’s total forest land area in Sweden.