Canfor to build C$200m facility in British Columbia

Canfor is hoping to continue to build on its collaborative relationships with Indigenous locals.

vishnupriya September 15 2023

Canada-based wood-building solutions provider Canfor has announced plans to invest around C$200m ($147.72m) to build a manufacturing facility in Houston, British Columbia (BC), Canada.

To be built as a low-cost, high-efficiency facility, it will have an annual manufacturing capacity of approximately 350 million board feet.

Canfor president and CEO Don Kayne said: “This project represents another significant investment by our company to strengthen our diversified operating platform and ensure that we can continue to deliver the high-value products that are in demand by our customers around the globe.

“This decision comes following a comprehensive evaluation of customer requirements and a careful evaluation of the availability of economic fibre in the region to support a successful investment.

“Today’s announcement underscores our ongoing commitment to British Columbia and the Houston community. It will strengthen our ability to provide our high-quality, sustainably produced forest products to the world, while providing good, family-supporting jobs here in BC.

“With this project we will also be building on our long history of strong, collaborative relationships with Indigenous nations in the area as we grow our business partnerships.”

Work regarding the project’s engineering and permitting processes will commence immediately.

The decision-making process for vendors and equipment selection will be completed by early next year, following the demolition and site preparation works expected to begin in March to May later that year.

The new facility’s planning, construction, and commissioning are estimated to take between 28 and 32 months, subject to contractor availability and equipment lead times.

South-East Asia Construction Market Dynamics

Per GlobalData analysis, the South-East Asia construction industry in 2023 is dominated by Indonesia, though the country will see a slowdown compared to 2022 due to elevated building material prices, weak commercial property demand, high interest rates and a softening of external demand. The construction industry in the Philippines is estimated to register a AAGR of 7.2% between 2024 and 2027, supported by the government’s focus on the development of the country’s rail and road transport and energy infrastructure.

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