In another blow to the province's ailing forestry industry, Canfor has announced it will shut down its final sawmill in the lumber town of Mackenzie, B.C.

The sawmill in the northern town - about 175 kilometers north of Prince George, is set to close Thursday and the planner mill will be mothballed two weeks later.

The shutdown will affect 200 workers, bringing the total of forest millworkers that have been laid off or lost their jobs permanently to more than 1,200.

That represents almost one-third of the town's total workforce.

Other estimates put the job losses in the community of 4,700 even higher, because loggers, truckers and suppliers will also lose their jobs.

Canfor officials in Prince George and Vancouver have not been available for comment but a brief company statement says the indefinite closure is an effort to minimize operating losses during a period of prolonged poor lumber markets.

Officials with local 18 of the Pulp Paper and Woodworkers of Canada are expected to make a statement Thursday.

Lumber mills across North America have cut production in the face of weak housing demand in the U.S.

Canfor said operations at its other mills will be adjusted to make up for the lost lumber production. The Mackenzie mill had an annual production capacity of 176 million board feet.