GreenFirst Announces the Temporary Curtailment of Some of its Operations

GreenFirst Forest Products Inc. (TSX: GFP) has announced a temporary curtailment of operations in response to significant market challenges, particularly following Kap Paper’s decision to idle its operations at the Kapuskasing paper mill, a key customer for GreenFirst’s wood by-products. This closure adds to growing difficulties in managing residual materials in Ontario, where four pulp and paper mills have closed in the last two years.

Starting October 6, 2025, GreenFirst will reduce sawmill operations across its facilities in Kapuskasing, Hearst, and Cochrane for one week. However, the curtailment at the Kapuskasing site may be extended due to its unique challenges. Notably, the remaining pulp and paper mills in Western Ontario are unable to fully absorb the volume of chips and biomass produced by sawmills throughout the province.

Broader issues in the forestry sector, including heightened tariffs on lumber exports to the U.S., ongoing uncertainty in lumber markets, and low lumber prices, are compounding these operational difficulties. Approximately 140 employees are expected to be affected by this decision, while kiln and planer mill operations will proceed without interruption.

CEO Joël Fournier emphasized the company’s commitment to navigating the current uncertainty, aiming to support employees and collaborate with governmental agencies for sustainable solutions. GreenFirst remains dedicated to transparency with its employees, shareholders, and stakeholders as the situation unfolds.

As a forest-first business focused on sustainable management, GreenFirst operates four sawmills across 6.1 million hectares of FSC® certified forestlands in Ontario, believing that responsible forestry practices offer significant advantages in the building products market. For additional information, visit GreenFirst’s website or contact Investor Relations.

GreenFirst Forest Products Inc. (TSX: GFP) recently announced a temporary curtailment of sawmill operations across its Kapuskasing, Hearst, and Cochrane facilities, effective October 6, 2025, due to the idling of operations by its key customer, Kap Paper. This development reflects underlying challenges within the Ontario forestry sector, particularly in light of recent mill closures and ongoing market volatility.

Investors should note that this curtailment exacerbates an already precarious situation for GreenFirst, given that it is the fourth pulp and paper mill to shut down in the region within the last two years. The inability of the remaining mills in Western Ontario to absorb the surplus wood by-products could lead to increased operational inefficiencies and potential financial strain for GreenFirst.

The company is currently navigating a complex landscape characterized by elevated tariffs on wooden exports to the U.S., low lumber prices, and overall uncertainty within the markets. While kiln and planer mill operations will continue uninterrupted, the direct impact on sawmill staffing—approximately 140 employees—implies short-term challenges and potential long-term repercussions on workforce morale and productivity.

Investors should closely monitor GreenFirst's reassessment measures and operational adjustments as the situation unfolds. While the management appears committed to sustainable practices and responsible forest management, the immediate volatility in lumber pricing combined with external economic pressures necessitates a cautious approach.

In the coming weeks, stakeholders should evaluate the company’s capacity to adapt to these challenges, including any potential collaborations with governmental entities to stabilize operations. As the forestry sector evolves, GreenFirst’s resilience and strategic responses to market conditions will be crucial in determining its future performance and investment potential.