West Fraser announced on December 4, 2025 that it will indefinitely curtail its oriented strand board (OSB) mill in High Level, Alberta, after an orderly wind‑down of the plant’s existing log supply. The curtailment will begin in spring 2026 and will reduce the company’s OSB capacity by 860 million square feet (3/8‑inch).
The decision follows a sharp decline in OSB demand, driven by housing‑affordability challenges and tariff uncertainty in the U.S. market. West Fraser’s strategy is to focus on lower‑cost, higher‑margin products, and the company expects a $200 million asset‑impairment loss in the fourth quarter of 2025 as a result of the curtailment. The company also confirmed that the idled production line at its Cordele, Georgia OSB facility—capacity 440 million square feet—will remain idle indefinitely.
West Fraser will offer about 190 employees at the High Level site opportunities at other company operations where available, reflecting a shift toward a leaner, more integrated business model. The move is part of a broader portfolio‑optimization effort that includes modernizing mills where practical and maintaining a defensive balance sheet and strong liquidity, as noted by President and CEO Sean McLaren in a Q1 2025 earnings call.
The company’s Q3 2025 results underscored the pressure on the OSB segment: net loss of $204 million and diluted EPS of –$2.63, compared with a –$1.03 EPS in Q3 2024. The decline in earnings reflects the weakening demand for OSB and the impact of the curtailment, while management highlighted cost control and strategic focus on higher‑margin products as key to weathering the downturn.
The curtailment signals a significant contraction in OSB capacity, but West Fraser’s diversified product portfolio and strong balance sheet—cash and short‑term investments of $546 million as of September 26, 2025—provide resilience. Analysts view the move as a prudent step to preserve cash and focus on higher‑margin opportunities, though the impairment will weigh on short‑term earnings.
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