Interfor Shifts HQ to Georgia as Tariffs Squeeze Canadian Lumber

Interfor Corporation, Canada’s largest softwood lumber producer, told employees on July 9 it will shift its corporate and functional support operations from Burnaby, British Columbia to Peachtree City, Georgia. Chief executive Ian Fillinger cited the need to position support functions closer to where 75% of the company’s operations are located in Central, Eastern, and Atlantic time zones. The move comes after Interfor idled two Northern Ontario sawmills indefinitely in April, blaming U.S. tariffs on softwood lumber.

Why Interfor is moving to the U.S.

Interfor will establish Georgia as its primary corporate hub while maintaining a West Coast presence. Fillinger’s July 9 memo stated the shift aims to strengthen mill and customer service by improving coordination, speed, and decision-making. The company has 4,000 employees and operates mills across Canada and the United States. About three-quarters of its business sits in time zones east of British Columbia, making a U.S. hub more operationally efficient.

Tariffs and mill closures pile pressure on Canadian lumber

In April, Interfor idled two Northern Ontario sawmills indefinitely, directly citing U.S. softwood lumber duties and tariffs. Rival Canfor announced on July 28 the permanent closure of its Fox Creek sawmill in Alberta, citing weak market conditions, high U.S. duties, and wildfire-driven fibre supply impacts. U.S. tariffs on softwood lumber have become a structural headwind for the Canadian industry.

No immediate layoffs, but gradual shift planned

Interfor’s memo stated there are no layoffs planned as part of the announcement and employment continues unchanged. The company plans to handle the gradual shift through attrition and future hiring decisions over multiple years. The memo did not specify which job functions would eventually move or how many positions are affected. Interfor did not respond to requests for comment on whether it will formally shift its corporate headquarters to the U.S.

Stock faces headwinds despite modest recovery

Interfor shares (IFP.TO) closed at C$12.58 on July 29, down 2.1% on the day but up 47% year-to-date. Meyka rates the stock C+ with a HOLD suggestion, citing weak profitability metrics. The company reported negative earnings per share of -4.08 and a negative return on equity of -28.7%. Meyka’s 12-month price forecast stands at C$6.46, well below current trading levels, signaling significant downside risk.

Final Thoughts

Interfor’s relocation signals how U.S. tariffs are reshaping Canadian lumber economics, pushing even major producers to abandon their home base. With Meyka grading the stock C+ and forecasting a 49% decline to C$6.46, the structural challenges facing Canadian softwood lumber remain severe.

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