The projects are part of a capital spending plan for 2011 totaling CAD 145 million, and a three year strategic plan that calls for total investment in sawmill improvement projects of CAD 300 million.

Following completion of the capital upgrades at its Vavenby mill, Canfor will restart this operation sometime in the third quarter and recall approximately 140 employees. When at full production, the mill will produce approximately 240 million board feet of spruce-pine-fir (SPF) lumber on an annual basis.

"This continues our strategy to invest in our mills, creating efficient and low cost operations," said Jim Shepard, Canfor president and CEO.

Canfor is a leading integrated forest products company based in Vancouver, British Columbia, with operations in Alberta, British Columbia, and Quebec in Canada, and in North Carolina, South Carolina, and Washington in the United States. The company produces primarily softwood lumber and also produces oriented strand board (OSB), remanufactured lumber products, and specialized wood products. Canfor also owns a 50.2% interest in Canfor Pulp Limited Partnership, which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange under the symbol CFP.