Monday, December 13, 2021
West Fraser Timber Co. Ltd. recently announces that it is yet to provide the update on operating conditions. However, owing to flood situation in British Columbia, which has impacted on overall timber transportation and has also decided that it would be hence difficult to provide with further updates till the reports are underpinned for the fourth-quarter earnings release on February 15, 2022.
B.C has been witnessing extensive flooding and severe weather in recent weeks. This has, unfortunately, caused disruption in transport and rail and truck routes. The overseas shipment has also faced challenges amidst the flood. The second half of November saw the closure of rail and truck routes, affecting the Company’s shipment. The Company’s western Canadian lumber weekly shipments have seen a decline of 25-30%. The pulp shipment to the port of Vancouver, a source of a majority of export ships, has averaged less than 20% of normal volumes. The uncertainty of the weather conditions continues to overcast unpredictability in delivery. However, West Fraser is considering all alternative transportation methods and routes to serve the customers efficiently. In order to manage inventory levels, raw material supplies, and integrated fibre supply chain, the company has reduced operating schedules at multiple western Canadian sites and will continue making adjustments as necessary. In such distressing times, the resumption of full transportation services cannot be estimated.
A diversified wood products company with over 60 facilities in Canada, the United States, the United Kingdom, and Europe, West Fraser is one of the leading wood products companies. The company sustainably sources and manages forest resources to produce wood products, pulp, newsprint, wood chips, and renewable energy.