VANCOUVER – Canfor Corp. says its going ahead with the construction of a US$120 million sawmill in Washington, Ga., as Canada’s softwood lumber industry continues to deal with punitive duties from the U.S.
But the Vancouver-based lumber company said early Friday that construction of the new 275-million board feet mill may not start in the second quarter of 2018 as initially planned.
Canfor said it has been advised by a contractor selected to build the mill of a “potential previous commitment that may prevent their construction of the facility.” The company said it was working to rectify the situation.
The investment announcement came as Canfor reported adjusted net income of $114.8 million or 89 cents per share for the last quarter, up from $37.7 million or 29 cents per share for the last quarter of 2016.
The lumber company said it hit record sales of $4.66 billion last year, translating to a full-year net income of $363.4 million compared with $136.8 million in 2016.
Canfor said that following rulings by the U.S. Dept of Commerce last quarter, the company is subject to duties of 20.52 per cent, down from the original 27.98 per cent.
The company says North American lumber demand remained strong in the last quarter with U.S. housing starts in line with a year earlier and Canadian housing starts up 16 per cent from 2016.
Canfor said the new mill will use the latest technology and will be is strategically located near its existing operation in the state.
Companies in this story: (TSX:CFP)