West Fraser Bounces Back to Full Production After Covid-19 Curtailments

SEATTLE (Scrap Monster): B.C.-based West Fraser Timber Co. Has emerged as the leader among large lumber producers to return to full production.

The adjustments in production schedule on account of Covid-19 pandemic restrictions have significantly impacted the company’s production during the initial quarter of the year. These have led to reduction of lumber and plywood production during Q1 2020 by 50 MMfbm and 10 MMsf respectively. The company had reported quarterly profit of $12 million, as compared with the loss reported during the corresponding quarter last year.

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Commenting on market conditions, the company noted that lumber prices and volumes have rebounded significantly compared with end-Q1 levels. It cited resilient demand for repair and remodel and treating applications. The demand for its wood products is expected to remain volatile during the rest of the year.

West Fraser reported significant improvement in available liquidity and reduction in lumber and log inventories.

In response to rapidly changing market situation and in order to comply with the health and safety protocols on account of the pandemic spread, the company had announced significant production cuts since the middle of March and throughout April. Other major lumber producers including Canfor, Interfor and Conifex had announced temporary curtailments and layoffs in response to the crisis situation.