VANCOUVER - West Fraser Timber (TSX:WFG) Co. Ltd. (TSX:NYSE:WFG) (NYSE:WFG), a diversified wood products company, announced today the permanent closure of its Fraser Lake sawmill in British Columbia. The company cited the inability to access economically viable fibre in the region as the reason for the shutdown.
The closure will affect approximately 175 employees. However, West Fraser aims to lessen the impact on the workforce by offering positions at its other operations. "We do not make these decisions lightly," said Sean McLaren, President & CEO of West Fraser. The company acknowledges the significant effect this will have on its employees, their families, suppliers, and the local community, which all depend on a thriving forest industry.
The shutdown of the Fraser Lake facility is expected to reduce West Fraser's Canadian lumber capacity by around 160 million board feet. This move is part of a broader strategy to align the company's capacity with demand and the availability of economic fibre sources. This strategy also includes the recent indefinite curtailment of operations in Huttig, Arkansas, and the closure of the Maxville, Florida sawmill.
In 2023, West Fraser made decisions to divest three pulp assets and acquire Spray Lake Sawmills, which the company believes will strengthen its position through economic cycles.
West Fraser anticipates it will incur restructuring and impairment charges of approximately $81 million in the fourth quarter of 2023 related to the facility closures and curtailments.
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