Weyerhaeuser is to axe three of its North American operations to remain competitive.
The rationalisation involves the closure of the company’s softwood lumber mill at Mountain Pine, Arkansas; the ending of production at its Canadian White Pine sawmill and K3 particleboard plant in Vancouver, British Columbia; and shedding sawmill, wood-fibre cement and glulam beam facilities in Durango, Mexico. The associated particleboard facility will continue operating.
The axing of K3 was said to have been forced on the company by the plant’s inability to compete in the global marketplace. The decision to close White Pine was based on high costs and a mismatch between timber supply and mill capacity.
Weyerhaeuser said the actions would result in an after-tax charge of US$21m when it reports fourth quarter results in January.
