West Fraser will shutter its sawmill in Lake Butler, Fla. by the end of this month.
The Vancouver-based wood products giant, with more than 60 facilities in Canada, the United States, the United Kingdom, and Europe, announced the “indefinite curtailment” as the result of high fibre costs and soft lumber markets.
The closure at the Lake Butler Sawmill will impact approximately 130 employees and reduce West Fraser’s U.S. lumber capacity by approximately 110 million board feet.
West Fraser said in its release it expects to mitigate the impact on affected employees by providing work opportunities at other company operations.
High fiber costs at Lake Butler and the current low-price commodity environment have impaired the ability to profitably operate the mill, West Fraser said. The indefinite curtailment of Lake Butler Sawmill better aligns its U.S. lumber capacity with demand.
West Fraser anticipates taking an impairment charge in the third quarter of 2024 associated with the announcement.
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