The write-down is divided between the company’s core business units, with C$215 million tied to its lumber segment and C$106 million stemming from its pulp and paper operations. Despite the scale of the charge, the company emphasized that the adjustment is non-cash and will not impact its liquidity, cash flows, or day-to-day operations.
In section Market Quotes
Canfor to Record C$321 Million Charge Over Supply Chain Headwinds
Vancouver-based forest products giant Canfor announced it will book a C$321 million ($235.3 million) non-cash impairment charge in the fourth quarter, citing mounting log supply pressures in Europe and a downturn in global pulp prices.
Regional Strains and Market Volatility
The impairment in the lumber division is specifically linked to the company’s European operations. According to the company, persistent log supply shortages in the region have inflated costs and reduced the carrying value of its assets. Meanwhile, the pulp segment faces a dual challenge: a sustained decline in global U.S.-dollar list prices and the increasing difficulty of securing the economically viable fiber required to maintain production levels.The move reflects broader industry trends where manufacturers are grappling with localized supply constraints even as global demand signals remain mixed. By taking the charge now, Canfor aligns its balance sheet with the current market realities of its international footprint.
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