Interfor Corporation (TSX: IFP) disclosed plans today to cut its lumber production by about 175 million board feet from May to September 2024. This reduction represents nearly 10% of its normal operating capacity.

These temporary production curtailments will affect all of Interfor’s operating regions, including the US South. The adjustments will include reduced operating hours, extended holiday breaks, reconfigured shifting schedules, and longer maintenance shutdowns.

The curtailments are a reaction to persistently weak market conditions. Interfor’s President & CEO, Ian Fillinger, commented,

“Benchmark lumber prices have continued to weaken since the beginning of the year, from already unsustainably low levels, as available supply has outstripped product demand.” He added, “This action will help bring Interfor’s production and the needs of our customers back into balance. It will also help to keep inventory levels in check as we move into the summer.”

Today’s announcement follows a previous statement on February 15, 2024, where Interfor announced it would indefinitely curtail its sawmill operations in Philomath, Oregon. The Philomath sawmill, which ceased operations and shipments at the end of March 2024, had an annual production capacity of 220 million board feet.

Interfor will continue to monitor market conditions across all of its operations and adjust its production plans accordingly.