10/31/2012 05:40 EDT | Updated 12/31/2012 05:12 EST

Canfor reopens mill in Radium Hot Springs, B.C., after $38.5-million upgrade

VANCOUVER - Canfor Corp. (TSX:CFP) has reopened its sawmill in Radium Hot Springs, B.C., after a $38.5-million upgrade.

The company says once the mill is operating at full capacity next year it will produce 240 million board feet annually and employ 144 people.

In addition to an upgrade to the sawmill, the company said it has built a new planer mill.

Canfor is one of Canada's biggest lumber producers.

The reopening comes as the U.S. housing sector, a key market for Canadian lumber, appears to be starting to recover.

A recent report suggested that U.S. housing starts should reach 900,000 next year and just over one million in 2014.