West Fraser Takes Action on High Level OSB Mill Amid Industry Slowdown
Rubber and Wood | 2025-12-08 14:11:54
The High Level mill has been part of West Fraser since its acquisition of the OSB line in 2021.
By Paul Ploumis
SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. (TSX & NYSE: WFG) announced that it will indefinitely curtail operations at its High Level, Alberta OSB mill in spring 2026, following an orderly wind-down and consumption of existing log supplies. The move comes amid a significant decline in North American oriented strand board (OSB) demand, particularly from the residential construction and remodeling sectors.
The decision will reduce West Fraser’s OSB production capacity by 860 million square feet (3/8-inch). The company plans to mitigate the impact on approximately 190 employees by offering positions at other West Fraser facilities, where available.
Additionally, the company confirmed that the idling of one production line at its Cordele, Georgia OSB facility, which began in late 2023, will continue indefinitely. That line adds 440 million square feet (3/8-inch) of capacity.
West Fraser’s OSB products are widely used for residential sheathing, sub-flooring, roof decking, repair and industrial applications. The High Level mill has been part of West Fraser since its acquisition of the OSB line in 2021.
The company expects to record an approximate $200 million asset impairment in Q4 2025 related to the indefinite curtailment. West Fraser cited market conditions and softened demand as the primary drivers for the decision, signaling a cautious approach to aligning production with current OSB market trends.
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Frequently Asked Questions
- What decision has West Fraser announced regarding its High Level, Alberta OSB mill?
The company will indefinitely curtail operations at the mill starting spring 2026, following a planned wind-down of existing log inventories.
- How much production capacity will be affected?
The curtailment will remove 860 million square feet (3/8") of OSB capacity from West Fraser’s network.
- What will happen to the employees at the High Level mill?
About 190 employees will be impacted. West Fraser plans to offer alternative roles at other company facilities, where possible.
