Vida AB to close two sawmills in southern Sweden

• Vida AB, a 77%-owned subsidiary of Canfor Corporation, announced the permanent closure of sawmill operations in Urshult and Orrefors, Sweden.
• The closures reduce annual lumber production capacity by approximately 265,000 cubic metres.
• Strategic intent is to address an imbalance between production capacity and fiber access in southern Sweden.
• Production will be concentrated into fewer, more efficient facilities to strengthen competitiveness.
• Vida AB will operate 13 sawmills across central and southern Sweden following the closures.
• CEO Karl-Johan Löwenadler stated the decision was difficult but necessary given ongoing operational imbalances.

• The news is consistent with the multi-year transformation strategy disclosed in the Q4 2025 transcript, which noted closing 9 high-cost sawmills since 2023. This closure represents a continuation of that known restructuring plan rather than a new strategic pivot.
• Following Q1 2026 earnings (May 6), where operating losses narrowed significantly from $415.9M in Q4 to $72.5M, this move supports the margin improvement narrative by removing inefficient capacity.
• The reduction in capacity is defensive; it mitigates future losses but limits upside revenue potential if demand recovers sharply.
• Given the market's reaction to Q1 earnings (price dropped from $12.40 on May 6 to $11.94 on May 15), investors remain cautious despite operational improvements.
• The news is classified as Routine - Positive because it validates management's execution of a previously communicated cost-cutting strategy without introducing unexpected financial catalysts or major M&A activity.

• Company: Canfor Corporation operates integrated forestry, lumber, pulp, and paper businesses across Canada, the United States, and Europe (via Vida AB).
• Flagship Project: The company's core asset is its diversified portfolio of sawmills and pulp mills, with a recent strategic focus on consolidating ownership of Canfor Pulp Products Inc. (CPPI) to 100%.
• Development Status: Post-acquisition completion in March 2026, the company is integrating CPPI operations while rationalizing European lumber capacity to address fiber access imbalances and cost pressures.
• Operational Footprint: 13 sawmills remaining in Sweden after closures; significant presence in North America (BC, Alberta, US South).