West Fraser Timber ( NYSE: WFG ) said Tuesday it will indefinitely curtail its Perry Sawmill in Florida later this month, citing high fiber costs and softening lumber markets.
West Fraser ( WFG ) said the curtailment will affect 126 employees and reduce its U.S. lumber production by 100M board feet; it expects to take an unspecified impairment charge in Q4 associated with the action.
High fiber costs at Perry and a low-price commodity environment have hurt its ability to profitably operate, the company said.
The weak housing market is causing pressure on the prices of OSB and lumber, so West Fraser Timber's ( WFG ) EBITDA is falling fast, Valkyrie Trading Society writes in an analysis published on Seeking Alpha .
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West Fraser to curtail Florida sawmill on high costs, weak lumber demand