VANCOUVER, BC, Sept. 19,
2024 /PRNewswire/ - West Fraser Timber Co. Ltd.
("West Fraser" or the "Company") (TSX and NYSE: WFG) announced
today that it will indefinitely curtail its sawmill in Lake Butler, Florida by the end of this month.
Today's decision is the result of high fiber costs and soft lumber
markets.
The indefinite curtailment of Lake Butler Sawmill will impact
approximately 130 employees and reduce West Fraser's U.S. lumber
capacity by approximately 110 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 Lake Butler
and the current low-price commodity environment have impaired the
ability to profitably operate the mill. The indefinite curtailment
of Lake Butler sawmill better
aligns our U.S. lumber capacity with demand.
West Fraser anticipates taking an impairment charge in the third
quarter of 2024 associated with the announcement.
About West Fraser
West Fraser is a diversified wood products company with more
than 60 facilities in Canada,
the United States, the
United Kingdom, and Europe, which promotes sustainable forest
practices in its operations. The Company produces lumber,
engineered wood products (OSB, LVL, MDF, plywood, and
particleboard), pulp, newsprint, wood chips, other residuals, and
renewable energy. West Fraser's products are used in home
construction, repair and remodelling, industrial applications,
papers, tissue, and box materials. For more information about West
Fraser, visit: www.westfraser.com.
Forward-Looking Statements
This news release contains forward-looking information or
forward-looking statements (collectively, "forward-looking
statements") within the meaning of applicable securities laws,
including those relating to the Company's indefinite curtailment of
the Lake Butler sawmill and anticipated timing thereof,
expected reduction of lumber capacity, anticipated impairment
charge in the third quarter of 2024 as well as related workforce
impact and our ability to mitigate the impact on affected employees
and better align production capacity with demand. Any such
forward-looking statements are based on information currently
available to us and are based on assumptions and analyses made by
us considering our experience and our perception of historical
trends and current conditions, including our assessment of higher
fiber supply costs, the low-price commodity environment and our
ability to operate the Lake Butler sawmills profitably
and are subject to inherent risks and uncertainties. Readers should
also refer to the risk factors set forth in the Company's annual
information form and management's discussion and analysis for the
year ended December 31, 2023, each dated February 14,
2024, as updated in our management's discussion and analysis for
the three and six months ended June 28, 2024,
dated July 24, 2024, each available at SEDAR+
(www.sedarplus.ca) and EDGAR (www.sec.gov/edgar). There can be no
assurance that the plans, intentions, or expectations upon which
forward-looking statements are based will be realized. Actual
results may differ, and the difference may be material and adverse
to the Company and its shareholders. Except as may be required by
law, the Company undertakes no obligation to publicly update or
revise any forward-looking statements.
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SOURCE West Fraser Timber Co. Ltd.