Canfor Corp.
Canfor Corporation is a Canada-based leading solid wood products company with a significant international presence, operating over 50 facilities across Canada, the United States, and Europe. Founded in 1938, Canfor has established a strong reputation in the lumber industry, providing a wide range of wood and pulp products. The company has historically been a major player in North America’s timber sector, contributing significantly to regional economies and employment. Despite facing industry challenges such as fluctuating demand and operational costs, Canfor remains committed to sustainable practices and market adaptation. Recently, the company announced the closure of its Darlington and Estill sawmills in South Carolina due to weak market conditions, impacting hundreds of employees and the local economy.
News Summary
Canfor Corp. has announced the closure of its sawmills in Darlington and Estill, impacting around 290 employees due to weak market conditions and financial losses. The shutdown is expected to reduce U.S. lumber production by 350 million board feet annually, significantly affecting local employment and the economy. The closures follow a trend of recent mill shutdowns in South Carolina, eliciting concerns from residents about future job opportunities. Canfor will provide severance payments and explore job placements for the affected workers.
Darlington, South Carolina – In a significant blow to the local economy, Canfor Corp. announced on June 27, 2025, that it will close its Darlington and Estill sawmills on August 25, 2025. The closures will impact approximately 290 employees, with the Darlington plant employing about 124 workers and the Estill facility employing roughly 171. Canfor cited weak market conditions and sustained financial losses as the primary reasons for this difficult decision.
As a result of these closures, Canfor’s U.S. lumber production is expected to decrease by 350 million board feet annually. This reduction underscores the challenges currently faced by the timber industry in South Carolina, which is valued at more than $23 billion. The impact of these closures will be felt not just by the employees but also by local businesses and the overall economy of the region.
Employees at the affected mills will receive severance payments as part of the closure process. Additionally, Canfor is committed to exploring potential job opportunities for these workers within its other operations. This gesture aims to mitigate the impact on employees during this transition.
The closures in Darlington and Estill are particularly concerning for Hampton County, where Canfor represents one of the few significant employers, along with only five others with more than 100 employees. This situation highlights the fragility of the job market in the area, especially in light of recent economic trends.
The announcement of Canfor’s closures closely follows the unfortunate shutdown of International Paper’s Georgetown plant, which led to nearly 700 job losses. This pattern of closures is alarming, as since 2021, almost a dozen mills or wood product companies have either shut down or reduced operations in or near South Carolina.
Several local residents expressed concerns about the future of their community without these major employers. The loss of jobs not only affects families directly involved but also has ripple effects on local businesses that depend on the economic activity generated by the sawmills.
In a contrasting development, two days after Canfor’s announcement, Hampton Lumber disclosed its plans to construct a new sawmill in Allendale County, projected to create 125 jobs by its opening in 2027. This could provide a glimmer of hope for those affected by the closures, although the timeline is significantly delayed.
Canfor operates out of Vancouver, B.C., and maintains a presence across more than 50 facilities in Canada, the United States, and Europe. The decision to close the Darlington and Estill sawmills reflects broader challenges within the lumber market, which has fluctuated dramatically due to various economic factors.
With rising operational costs and diminishing demand for lumber products, companies like Canfor are forced to make difficult choices to sustain their business. As the industry continues to adjust to these market dynamics, communities in South Carolina will need to adapt to the changing economic landscape.
The immediate aftermath of Canfor’s decision will likely continue to evolve. While employees prepare for the challenging transition, local and state efforts may become essential in supporting those impacted, fostering new job creation, and stabilizing the regional economy.
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Additional Resources
- ABC News 4
- Wikipedia: Lumber Industry
- WPDE News
- Google Search: Darlington sawmill closure
- Post and Courier
- Encyclopedia Britannica: Economic Impact
- WMBF News
- Google News: Canfor sawmill closures
