West Fraser Timber reduces lumber capacity

West Fraser Timber (WFG) will permanently close both its Augusta, Georgia and 100 Mile House, British Columbia lumber mills by the end of 2025 following an orderly wind-down. The decision is the result of timber supply challenges and soft lumber markets. The 100 Mile House lumber mill is no longer able to reliably access an adequate volume of economically viable timber. Challenging softwood lumber demand, higher duties and additional tariffs have compounded this situation. The mill closure will impact approximately 165 employees at the site and reduce West Fraser’s capacity by 160 million board feet. The closure of the Augusta lumber mill is a result of challenging lumber demand, and the loss of economically viable residual outlets, which combined has compromised the mill’s long-term viability. The closure will impact approximately 130 employees at the site and reduce West Fraser’s capacity by 140 million board feet. West Fraser expects to mitigate the impact on affected employees by providing work opportunities at other company operations, where available. West Fraser is also announcing that the 2024 indefinite curtailment of its lumber mills in Huttig, Arkansas and Lake Butler, Florida will now be permanent, and the mills will be dismantled and the sites sold. The company also confirms its replacement Henderson, Texas mill has commenced start up and the adjacent mill has ceased operations. The company expects to record associated restructuring and impairment charges in Q4.