West Fraser Timber Co Ltd T.WFG

Alternate Symbol(s): WFG

Forest Products Lumber & Wood Production

West Fraser Timber Co. Ltd. is a diversified wood products company. The Company is engaged in manufacturing, selling, marketing and distributing lumber, engineered wood products, including oriented strand board (OSB), laminated veneer lumber (LVL), medium-density fiberboard (MDF), plywood, particleboard, pulp, newsprint, wood chips and other residuals and renewable energy. Its products are used in home construction, repair and remodeling, industrial applications, paper, tissues, and box materials. Its segments include Lumber, North America engineered wood products (NA EWP), Pulp & Paper and Europe EWP. Its business comprises lumber mills, OSB facilities, renewable energy facilities, pulp and paper mills, plywood facilities, MDF facilities, particleboard facilities, LVL facility, treated wood facility, and veneer facility. The Company operates approximately 58 facilities in Canada, the United States, the United Kingdom and Europe. It also offers wood preservation services.

TSX:WFG - Post by User

West Fraser Timber Co Ltd

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Jan 10, 2024 9:19am

91 Views

Post# 35818990

RBC

January 9, 2024

West Fraser Timber Co. Ltd.
Announces closure of Maxville sawmill, indefinite curtailment of Huttig sawmill

NYSE: WFG | USD 86.34 | Outperform | Price Target USD 97.00

Sentiment: Neutral

Closing Maxville, indefinitely curtailing Huttig. West Fraser announced that it will close its sawmill in Maxville, Florida, and indefinitely curtail its sawmill in Huttig, Arkansas, by the end of January. Together, these actions will reduce its lumber capacity by 270 mmfbm (equivalent to ~4% of the company's total lumber capacity as of YE22). The company highlighted high fiber costs and soft lumber markets as key drivers of the decision. The company expects to take restructuring and impairment charges of ~ $50MM in Q423 as a result.

Maxville closure follows Perry's indefinite curtailment. West Fraser announced an indefinite curtailment of its Perry, Florida sawmill in January 2023. We think high fibre costs in Florida can be a challenge for companies operating in the region. Of note, West Fraser operates two other sawmills in northern Florida near Maxville (Lake Butler and Whitehouse), and we would expect Maxville's closure could help fibre costs for those mills at the margin.