Canfor is permanently closing two mills in British Columbia (BC).

The closures affect the Rustad sawmill in Prince George and Tackama plywood mill in Fort Nelson.

The mills had been the subject of a lengthy indefinite shutdown since the collapse of the US residential housing market in 2008.

Canfor said the capital investment needed to bring Rustad up to a globally competitive operating standard was prohibitive.

It will instead focus on a C$300m three-year investment plan on other facilities.

When Rustad was idled in 2009, it had been in continuous operation for 62 years. The Tackama operation was part of Canfor’s 2004 acquisition of Slocan Forest Products and at the time was British Columbia’s largerst plywood mill.

However, Canfor said it was committed to the BC interior and was seeing “tremendous successin developing new markets for wood products throughout Asia Pacific.