West Fraser provides update on COVID-19 production adjustments

Apr 03, 2020

In response to the continuing COVID-19 pandemic West Fraser is providing an update on production adjustments implemented to address changing operating, supply chain and market conditions. West Fraser will provide a further production outlook update as part of its Q1 earnings release scheduled for April 28 and does not anticipate providing another update before then.

As a result of the continuing proliferation of the COVID-19 pandemic and the imposition of mandatory and recommended governmental restrictions on movement, travel, work and trade that are impacting our operations and employees, the demand for forest products and the availability of residuals and other inputs and transportation services, the following additional changes to operating schedules at West Fraser’s manufacturing operations have been implemented. These operating schedules will be assessed and adjusted as may be required to further respond to the effects of the COVID-19 pandemic, the need to protect the health and safety of our employees and continuing changes in mill operating, supply chain and market conditions.

Lumber
Effective April 6, West Fraser will further reduce its SPF production by 30 to 40 million board feet of production per week which represents between 45 and 60% of SPF production. SYP production will continue in line with the reductions previously announced on March 19. West Fraser plans to continue to operate its power generation assets at its Canadian sawmill sites during this period.

Panels
Effective April 6, plywood production at the Company’s three manufacturing sites will be further adjusted on an ongoing basis. It is expected that curtailments of at least 5,000 msf of plywood production will continue. MDF and LVL production may also be reduced, primarily through the reduction of operating hours.

Pulp
Effective April 20, West Fraser will take approximately 4 weeks of downtime at its Cariboo Pulp and Paper (“Cariboo”) joint venture pulp mill resulting in an approximate reduction in NBSK production of 30,000 tonnes of which West Fraser’s share is 15,000 tonnes. The downtime is necessitated by decreased fibre availability as a result of widespread sawmill curtailments in British Columbia and the other effects of the COVID-19 pandemic on mill operations and employees. During this downtime, the cogeneration facility at Cariboo is expected to continue to operate.

West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips, other residuals and energy with facilities in western Canada and the southern United States.

West Fraser shares trade on the Toronto Stock Exchange under the symbol: “WFT”.

For more information:

Chris Virostek, Vice-President, Finance and Chief Financial Officer
(604) 895-2700

www.30tiancheng.icu