Interfor plans further curtailments for the rest of the year
Posted on August 16, 2024 |
In Q2, Interfor's lumber production totaled 1.0 billion board feet, down by 35 million board feet from the previous quarter, partly due to part to temporary curtailments and the indefinite closure of the Philomath, Oregon sawmill.
Interfor plans to temporarily cut its lumber production by 280–350 million board feet between August and December 2024, which is about 15–18% of its normal operations.
The company announced a $6.6 million investment, primarily aimed at the multi-year reconstruction of the Thomaston, Georgia sawmill.
On June 27th, Interfor sold the property and assets of its former Philomath, Oregon sawmill for $15.0 million, and recorded a $4.3 million non-cash charge related to the sale.
Interfor also sold Coastal BC forest tenures with an allowable annual cut (AAC) of 50,000 cubic meters and related assets and liabilities for $8.3 million, resulting in a gain of $8.2 million.
As of June 30th, Interfor held approximately 1,137,000 cubic meters of AAC awaiting approval from the Ministry of Forests.
After the quarter ended, on July 29th, Interfor sold 104,689 cubic meters of AAC for $13.2 million in cash.