Vancouver-based forestry giant Canfor Corporation (
TSX:T.CFP,
Stock Forum) announced today it will invest some $36 million in efficiency and recovery improvements at their Houston, British Columbia sawmill, if a tentative labour deal with the United Steelworkers union is approved.
The five-year proposal would end five months of negotiation and offers “considerable gains for employees” at a dozen Canfor mills,
according to a union spokesman.
The company says it will invest in primary and secondary breakdown lines, and make advancements in scanning and optimization technology.
"Our newly-strengthened fibre position in the Houston region allows us to proceed with this significant investment," said Canfor President and CEO Don Kayne in an after trading hours news release. "These capital improvements are designed to ensure we are able to operate a world-class facility in Houston for the long term, in all market conditions."
The company says it has invested $650 million in modernizing its facilities since 2010.
Shares in Canfor rose 1.7% on the day’s trading. The company has a market cap of $3.3 billion with 141.3 million shares outstanding.