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Canfor Pulp Products Inc T.CFX

Alternate Symbol(s):  CFPUF

Canfor Pulp Products Inc. is a Canada-based global supplier of pulp and paper products with operations in the central interior of British Columbia (BC). The Company operates through two segments: pulp and paper. The pulp segment includes purchase of residual fiber, and production and sale of pulp products, including Northern Bleached Softwood Kraft (NBSK) pulp and Bleached Chemi-Thermo Mechanical Pulp (BCTMP), as well as energy revenues. The paper segment includes production and sale of paper products, including bleached, unbleached, and colored paper. Its products under the solid wood category include dimension lumber, specialty lumber, and engineered wood products. It produces green energy in its lumber and pulp facilities across North America. The Company owns and operates three mills in Prince George, BC with a total capacity of about 780,000 tons of Premium Reinforcing Northern Bleached Softwood Kraft (NBSK) Pulp and 140,000 tons of kraft paper.


TSX:CFX - Post by User

Comment by dosperroson Mar 26, 2023 3:18pm
110 Views
Post# 35361381

RE:pulp and paper industry

RE:pulp and paper industryThanks man, good find.  I only skimmed it as it's a bit long on CBC platitudes (e.g. Greenpeace talking points conflating Brazilain deforestation with sustainable logging in Canada).

But yes, they dominate the coast.  Fully.  They, Paper Ex (PE), also own the Kootneys.  Now it's Ontario.  Domtar first.  They also made me a decent few hundred K when when they took over Resolute.  That said, I'm not super thrilled how that went down as PE got the upper hand on RFP, but it was "resolved" in a weird way with the monetization of the claim on softwood duty refunds (~$5/share).

Regardless, what matters here?  It was the previous PE deal.  For Domtar.  Domtar ran that big NBSK mill in Kamloops.  They sold it to Kruger knowing there was zero (ZERO) chance of the competition board allowing them to take it.  They'd have an absurd monopoly on byproducts and could tank residual (chips) prices in southern BC..  

So 2 things matter here from what I can tell:

1) PE can't buy CFX (too concentrated).
2) The sales price for Kamloops was big time.  I recall seeing the asking price was super high.  So, that bodes well.


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