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TORONTO, March 05, 2025--(BUSINESS WIRE)--GreenFirst Forest Products Inc. (TSX: GFP) ("GreenFirst" or the "Company") expresses deep concern over the United States government’s decision to impose a 25% tariff on Canadian softwood lumber, which came into effect on Tuesday, March 4. This measure threatens the stability of the Ontario forestry sector, which employs thousands of workers and supports local economies across the province.
"The imposition of this tariff is highly unfortunate and will have a significant impact on the entire industry," said Joel Fournier, GreenFirst’s CEO. "We are actively working with both provincial and federal governments, as well as industry associations, to develop a support plan for the sector and to ensure that diplomatic efforts to remove these tariffs are accelerated."
The tariff is expected to raise the price of lumber and other building materials, likely increasing the price of new homes in the United States and further exacerbating the challenges of an already undersupplied housing market. This increase in homebuilding expenses will make homeownership even more unattainable for already financially stretched American homebuyers.
As a 100% Ontario-based Company operating four sawmills in Northern Ontario, GreenFirst directly employs approximately 800 people and plays a crucial role in the province’s economy. The Company remains committed to its long-term vision of becoming a top-quartile producer in North America, as outlined in its capital expenditure plan announced in Q4 2024. However, in response to this recent development, GreenFirst has been proactively preparing strategies to mitigate its impact.
With a strong balance sheet, GreenFirst is well-positioned to navigate these challenges. To ensure financial resilience, the Company will temporarily pause certain strategic capital expenditures until more clarity emerges regarding the tariff’s long-term effects. While GreenFirst’s commitment to operational excellence remains unchanged, a cautious approach to capital allocation will be taken to safeguard the Company’s financial health.
"We urge the federal and provincial governments to take immediate action to support our industry during this challenging time. GreenFirst will continue to monitor the situation closely and will provide updates as more information becomes available," said Fournier.
About GreenFirst
GreenFirst Forest Products is a forest-first business focused on sustainable forest management and lumber production. The Company owns four sawmills located in rich wood baskets, proudly operating over 6.1 million hectares of FSC®-certified public Ontario forestlands (FSC®-C167905). GreenFirst believes that responsible forest practices, coupled with the long-term green advantages of lumber, provide the Company with significant cyclical and secular advantages in building products.