VANCOUVER, B.C, Jan. 10,
2023 /PRNewswire/ - West Fraser Timber Co. Ltd.
("West Fraser" or the "Company") (TSX and NYSE: WFG) announced
today that it will indefinitely curtail its Perry Sawmill in
Florida later this month.
Today's decision is the result of high fiber costs and softening
lumber markets.
The indefinite curtailment of Perry Sawmill will impact
approximately 126 employees and will reduce West Fraser's US lumber
production by 100 million board feet. West Fraser expects to
mitigate the impact on effected employees by providing work
opportunities at other West Fraser operations.
High fiber costs at Perry and a
low-price commodity environment have impaired its ability to
profitably operate. The indefinite curtailment of Perry
Sawmill better aligns our production capacity with
demand.
West Fraser anticipates taking an impairment charge in the
fourth quarter of 2022 associated with the indefinite
curtailment.
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. From responsibly sourced and
sustainably managed forest resources, 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 Perry Sawmill, anticipated impairment charge in the fourth
quarter of 2022 as well as related workforce impact and our ability
to mitigate the impact on effected 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
Perry Sawmill 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, 2021, each dated February
15, 2022, as updated in our management's discussion and
analysis for the nine months ended September
30, 2022, dated October 26,
2022, each available at SEDAR
(www.sedar.com) and EDGAR
(www.sec.gov/edgar.shtml). 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.