West Fraser To Permanently Close Chasm Lumber Mill

SEATTLE (Scrap Monster): West Fraser announced its plans to permanently close its Chasm lumber mill in British Columbia. Also, it intends to eliminate the third shift at its 100 Mile House lumber mill. The permanent production reduction and shift cutback is expected to be implemented during the third quarter of the current year.

Announcing the decision, Ray Ferris, President and Chief Operating Officer expressed sincere regrets for the impacts of the decision on its employees, their families and communities. He assured that the company will make all possible efforts to mitigate the possible effects of the decision. The affected employees will be provided opportunity to relocate to other company locations. The company will also offer necessary assistance to search for suitable alternative job, Ferris added.

ALSO READ: West Fraser B.C. Sawmills Announce Temporary Production Curtailment

The West Fraser new release further noted that the decision is the result of tight timber supply constraints on account of devastating Mountain Pine Beetle infestation, rampant wildfires, sharply declining lumber prices and escalating saw log costs.  The reduced harvest levels set by the provincial administration has resulted in insufficient timber supply to support the lumber production capacity at region’s mills.

The production closure is likely to impact approximately 176 employees at Chasm. Also, the announced curtailments are likely to affect 34 employees at 100 Mile House. The above announcement will lead to permanent reduction of West Fraser’s lumber production by approximately 314 million board feet.

It must be noted that both the above mills had earlier announced temporary production curtailments for two weeks in May this year.