Exhibit 99.1
For Immediate Release
WEST FRASER ANNOUNCES CLOSURE OF MAXVILLE SAWMILL AND INDEFINITE CURTAILMENT OF
HUTTIG SAWMILL
VANCOUVER, B.C., January 9, 2024 West Fraser Timber Co. Ltd. (West Fraser or the Company) (TSX and NYSE: WFG) announced today that it will close its sawmill in Maxville, Florida and indefinitely curtail operations at its sawmill in Huttig, Arkansas by the end of this month. Todays decision is the result of high fiber costs and soft lumber markets.
The closure of Maxville Sawmill will impact approximately 80 employees, while the indefinite curtailment of Huttig will impact 140 employees. In aggregate this will reduce West Frasers U.S. lumber capacity by approximately 270 million board feet. West Fraser expects to mitigate the impact on affected employees by providing work opportunities at other company operations.
High fiber costs at Maxville and the current low-price commodity environment have impaired the ability of both mills to profitably operate. The closure of Maxville and the indefinite curtailment of the Huttig sawmill better aligns our U.S. lumber capacity with demand.
West Fraser anticipates taking restructuring and impairment charges of approximately $50 million in the fourth quarter of 2023 associated with this announcement.
About West Fraser
West Fraser is a diversified wood products company with more than 60 facilities in Canada, the United States, the United Kingdom, and Europe. From responsibly sourced and sustainably managed forest resources, the Company produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), pulp, newsprint, wood chips, other residuals, and renewable energy. West Frasers products are used in home construction, repair and remodelling, industrial applications, papers, tissue, and box materials. For more information about West Fraser, visit www.westfraser.com.
Forward-Looking Statements
This news release contains forward-looking information or forward-looking statements (collectively, forward-looking statements) within the meaning of applicable securities laws, including those relating to the Companys closure of the Maxville sawmill and indefinite closure of the Huttig sawmill and anticipated timing thereof, expected reduction of lumber capacity, anticipated impairment charge in the fourth quarter of 2023 as well as related workforce impact and our ability to mitigate the impact on affected employees and better align production capacity with demand. Any such forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us considering our experience and our perception of historical trends and current conditions, including our assessment of higher fiber supply costs, the low-price commodity environment and our ability to operate the Maxville and Huttig sawmills profitably and are subject to inherent risks and uncertainties. Readers should also refer to the risk factors set forth in the Companys annual information form and managements discussion and analysis for the year ended December 31, 2022, each dated February 14, 2023, as updated in our managements discussion and analysis for the three and nine months ended September 29, 2023, dated October 25, 2023, each available at SEDAR+ (www.sedarplus.ca) and EDGAR (www.sec.gov/edgar). There can be no assurance that the plans, intentions, or expectations upon which forward-looking statements are based will be realized. Actual results may differ, and the difference may be material and adverse to the Company and its shareholders. Except as may be required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.
For More Information
Media Contact
Joyce Wagenaar
Director, Communications
Tel. (604) 817-5539
media@westfraser.com
Investor Contact
Robert B. Winslow, CFA
Director, Investor Relations & Corporate Development
Tel. (416) 777-4426
shareholder@westfraser.com