West Fraser Timber To Permanently Close Sawmill In Fraser Lake, British Columbia, Following An Orderly Wind-down; Decision Is Due To Inability To Access Economically Viable Fibre In The Region
Portfolio Pulse from Benzinga Newsdesk
West Fraser Timber Co. Ltd. (WFG) has announced the permanent closure of its Fraser Lake Sawmill in British Columbia due to the inability to access economically viable fibre. The closure will affect about 175 employees, though the company plans to offer them opportunities at other operations. This will result in a reduction of West Fraser's Canadian lumber capacity by 160 million board feet and lead to restructuring and impairment charges of approximately $81 million in Q4 2023.
January 22, 2024 | 10:49 pm
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West Fraser Timber Co. Ltd. is closing its Fraser Lake Sawmill, affecting its workforce and reducing lumber capacity, with significant Q4 2023 charges expected.
The closure of the Fraser Lake Sawmill is a significant operational change for West Fraser Timber, likely leading to a negative perception in the short term due to the reduction in capacity and the substantial financial charges. While the company is attempting to mitigate the impact on employees, the news could still be seen negatively by investors concerned about operational efficiency and cost management.
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