Western Forest Products Closes B.C. Mill as Lumber Market Falters

SEATTLE (Scrap Monster): Western Forest Products (WEF) has announced that it is closing its mill in Port Alberni, British Columbia and cutting about 100 jobs as the North American lumber market continues to slump.

The Alberni-Pacific Division mill, which is located on Vancouver Island, has been closed since last fall, but the curtailment was only expected to last for six months. Western Forest Products has confirmed that it no longer plans to restart the sawmill.

Western Forest Products said a group that includes the United Steelworkers union and Indigenous partners will spend the next 90 days exploring viable solutions for the Port Alberni mill.

Western Forest Products operates several mills on Vancouver Island and the Port Alberni facility is the only one facing permanent closure, the company said.

Western Forest is the latest lumber company to announce mill closures and job cuts in British Columbia as rising interest rates cool the housing markets in the U.S. and Canada, leading to a decline in lumber demand.

Canfor Corp. (CFP) said last week that it is permanently closing its Chetwynd mill and the pulp line in Prince George, British Columbia, changes that impact as many as 800 workers in the province.

Western Forest Products’ stock has declined 31% in the last year to $1.39 per share.

Courtesy: www.baystreet.ca