Weekly Real Estate News
West Fraser Timber said October 28 that it will indefinitely curtail its Huguley oriented strand board mill in Lanett, Alabama, and its lumber mill in Leola, Arkansas, citing weak demand for products used in home construction and renovation. The curtailments are expected in the fourth quarter after orderly wind-downs. The company estimates annual capacity reductions of 500 million square feet of OSB, measured on a three-eighths-inch basis, and 225 million board feet of Southern yellow pine lumber. It expects a $200 million to $220 million fourth-quarter asset impairment related to the decisions. West Fraser reported third-quarter sales of $1.363 billion, a net loss of $80 million and adjusted EBITDA of $38 million. Management cited housing affordability constraints, soft wood-products demand and higher energy input costs. The decisions underscore how weak housing activity is reaching construction-materials suppliers. West Fraser acknowledged the effect on employees and communities but did not provide a verified headcount of affected workers in the release.
Source: Original company or regulator announcement.
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