Global panel products manufacturer West Fraser has shared its expectations for 2026 OSB output in its US and European divisions, signalling shipments will either be static or slightly lower for the year ahead.
In a goodwill impairment and operational outlook announcement on January 8, West Fraser said its North America OSB shipments are targeted to be 5.9 to 6.3 billion square feet (3/8-inch basis) in 2026.
In its Q3, 2025 results, the company has forecast total 2025 annual OSB shipments for North to be 6.3 to 6.5 billion square feet (3/8-inch basis). The Q4/full 2025-year report is expected to be published soon.
Meanwhile, European and UK OSB shipments in 2026 are targeted to be 1.0 to 1.25 billion square feet (3/8-inch basis) – which is the same range predicted for the final 2025 shipment tallies.
West Fraser also announced it would record a US$409m non-cash impairment of goodwill as a result of the protracted downcycle that has caused management to recalibrate certain assumptions used in its annual goodwill impairment test. The impairment represents the entire amount of goodwill associated with the Company’s US lumber operations.
Capital expenditures are expected to be US$300m to $350m in 2026, while costs for resins and chemicals used in OSB manufacturing are expected to remain relatively stable.
West Fraser announced in early December that it was reducing OSB capacity in North America in response to current market dynamics. The High Level, Alberta is being indefinitely curtailed in the spring of 2026 following an orderly wind-down and consumption of the mill’s existing log supply.
West Fraser also confirmed that the idling of one of its production lines at its Cordele, Georgia OSB facility since late 2023 will continue indefinitely.
High Level has a capacity of 860 million square feet, while the Cordele facility has a capacity of 440 million square feet.
