West Fraser to ‘Curtail’ Operations at South Arkansas Mill

A Google Street View image of the West Fraser mill in Huttig in 2014 (© Google)

Canadian timber giant West Fraser Timber Co. Ltd. announced it will “curtail” operations at its sawmill in Huttig, a move that will affect about 140 employees.

The Vancouver-based company is also closing a mill in Maxville, Florida. About 80 employees at that mill will lose their jobs.

West Fraser said the moves will take effect by the end of the month, reducing the company’s U.S. lumber capacity by about 270 million board feet.

The publicly traded company said it’s scaling down operations due to high fiber costs and soft lumber markets that have weighed on profits. “The closure of Maxville and the indefinite curtailment of the Huttig sawmill better aligns our U.S. lumber capacity with demand,” the company said in a statement.

West Fraser expects to take restructuring and impairment charges of $50 million in the fourth quarter of 2023.

The company said it plans to provide affected employees with other work opportunities. West Fraser also has mills in Mansfield, Russellville and Leola.

West Fraser acquired the Huttig mill from Plum Creek Timber Co. in 2000.

Lumber prices surged to record highs during the COVID-19 pandemic before returning to normal levels in mid-2022. Demand waned last year as rising interest rates slowed the pace of new home construction.