Canadian lumber mills are continuing to cut production due to weak market conditions, economic uncertainty, and U.S. tariffs.
Among them West Fraser Timber Co. Ltd., which has announced that it will permanently close both its 100 Mile House, British Columbia and Augusta, Georgia 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.
West Fraser Timber says in a news release that 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 closure of these mills better positions West Fraser to compete in this challenging environment.
The Company expects to record restructuring and impairment charges in the fourth quarter of 2025 associated with this announcement and the factors outlined herein.
