West Fraser cuts back US sawmilling operations due to high costs and poor demand
30 January 2024Canada-based forest products manufacturer West Fraser Timber Co Ltd has announced it will close its sawmill in Maxville, Florida and indefinitely curtail operations at its sawmill in Huttig, Arkansas by the end of January.
The decision is the result of high fibre 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 US 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 fibre 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 US lumber capacity with demand,” the company said.
West Fraser anticipates taking restructuring and impairment charges of approximately US$50m in the fourth quarter of 2023 associated with this announcement.
