Canfor Corp. says a Swedish company in which it owns a 70 per cent stake has signed a deal to buy a sawmill for $6 million.

The Vancouver-based forestry company says Vida AB will acquire the sawmill in Sweden from Ingarp Träskydd.

It says the mill has 50 million board feet in annual capacity.

It adds that it has the potential to expand to 100 million board feet.

The transaction is expected to close on Oct. 3.

Canfor acquired its stake in Vida in 2019 for about $580 million.

This report by The Canadian Press was first published Sept. 25, 2023.