West Fraser to Cut B.C. Lumber Production by Further 15-25%

SEATTLE (Scrap Monster): West Fraser announced major re-scheduling to its lumber and plywood operations in the British Colombia, which in turn will sizably reduce the company's output from the region.

According to company press release, it has decided to introduce variable operating schedules at five of its B.C. sawmills. The decision is estimated to decrease the current B.C. lumber production by at least 15-25%. The operating schedules at these mills will be adjusted from time to time to reflect the prevailing market conditions. The proposed reduction of operating schedules and production is likely to reduce the company's lumber production by approximately 100 million board feet through the end of the current year, it said. The variable operating schedules are likely to continue until improvement in market and economic conditions.

Also, West Fraser has decided to curtail B.C. plywood production for a period of two weeks. This is likely to reduce the plywood output by nearly 9 Msf.

The variable operating schedules at B.C. sawmills and production curtailment at the region's plywood operations are expected to commence on Sep 16th.

The company blamed sustained weak market conditions and high log costs for the production reductions and curtailments.

In the latest of the series of mill closures and production curtailments across the province, Teal-Jones Group has decided to shut down the remaining B.C. logging operations, including harvest operations in the Fraser Valley and Honeymoon Bay. The Group had earlier reduced its logging operations in the B.C. Coast in May this year.