- Western Forest Products (TSX:WEF) plans to reduce lumber production in its B.C. sawmills by 30 million board feet from now to December 2024
- For the entire year of 2024, the company anticipates a reduction in total lumber production by roughly 90 million board feet, which represents about 10 per cent of the company’s annual lumber capacity
- These temporary curtailments are attributed to a mix of market challenges, including weaker demand for lumber and increased U.S. softwood lumber duty rates
- Western Forest Products stock last traded at $0.56 per share
Western Forest Products (TSX:WEF) plans to reduce lumber production in its B.C. sawmills by 30 million board feet from now to December 2024.
“We continue to face more challenging lumber markets and operating conditions and are taking proactive steps to match production to market demand,” Western’s president and CEO Steven Hofer, said in a news release. “With the potential for the combined U.S. softwood lumber duties rate to more than double in the second half of 2025, all levels of government need to be focused on creating a policy environment that supports the forestry industry and encourages domestic investment.”
For the entire year of 2024, the company anticipates a reduction in total lumber production by roughly 90 million board feet, with around 30 million board feet of this reduction occurring in Q3 2024. This overall reduction represents about 10 per cent of the company’s annual lumber capacity. This is expected to impact around 800 employees.
These temporary curtailments are attributed to a mix of market challenges, including weaker demand for lumber and increased U.S. softwood lumber duty rates. Factors related to the operating environment in B.C. have also led to a shortage of economically viable log supply at certain sawmills.
This news comes as another blow to the province’s lumber industry, as just one month ago, Canfor (TSX:CFP) announced that it will close two of its sawmills based in Northern British Columbia by the end of the year.
One of the largest private employers on Vancouver Island, Western Forest Products is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets with operations and employees primarily on the coast of British Columbia and Washington state.
Western Forest Products stock (TSX:WEF) last traded at $0.56 per share. Though 24.44 higher than it was three months ago, its stock has fallen 21.13 per cent since the year began.
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