Wednesday, January 10, 2024
West Fraser Timber Co. Ltd. has recently announced that it will close its sawmill in Maxville, Florida and indefinitely curtail operations at its sawmill in Huttig, Arkansas by the end of this month. Today’s decision is the result of high fiber costs and soft lumber markets.
The closure of Maxville Sawmill will impact approximately 80 employees, while the indefinite curtailment of Huttig will impact 140 employees. In aggregate this will reduce West Fraser’s U.S. lumber capacity by approximately 270 million board feet. West Fraser expects to mitigate the impact on affected employees by providing work opportunities at other company operations.
High fiber costs at Maxville and the current low-price commodity environment have impaired the ability of both mills to profitably operate. The closure of Maxville and the indefinite curtailment of the Huttig sawmill better aligns our U.S. lumber capacity with demand.
West Fraser anticipates taking restructuring and impairment charges of approximately $50 million in the fourth quarter of 2023 associated with this announcement.
West Fraser Timber Co. Ltd. (“West Fraser” or the “Company”) (TSX and NYSE: WFG) announced today that it will close its sawmill in Maxville, Florida and indefinitely curtail operations at its sawmill in Huttig, Arkansas by the end of this month. Today’s decision is the result of high fiber costs and soft lumber markets.
The closure of Maxville Sawmill will impact approximately 80 employees, while the indefinite curtailment of Huttig will impact 140 employees. In aggregate this will reduce West Fraser’s U.S. lumber capacity by approximately 270 million board feet. West Fraser expects to mitigate the impact on affected employees by providing work opportunities at other company operations.
High fiber costs at Maxville and the current low-price commodity environment have impaired the ability of both mills to profitably operate. The closure of Maxville and the indefinite curtailment of the Huttig sawmill better aligns our U.S. lumber capacity with demand.
West Fraser anticipates taking restructuring and impairment charges of approximately $50 million in the fourth quarter of 2023 associated with this announcement.
The continued success of West Fraser is based on our disciplined operating focus and cost-conscious manufacturing approach.
They have a consistent and reliable business model that’s based on efficiency and unwavering attention to cost management. West Fraser reinvests in their operations to ensure their committed staff have the right resources to compete and win in a challenging industry.
Over the few years, West Fraser has grown beyond the Company’s original base in British Columbia. Today, West Fraser gets one of the largest lumber and OSB manufacturers in the world. They are able to create new platforms for growth in the areas where they have operated and in regions with a stable or growing timber supply.
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Tags: sawmill, west fraser, wood and panel, woodworking industry, woodworking USA
