West Fraser Puts Huguley OSB On Hold

West Fraser announced that it will indefinitely curtail its Huguley oriented strandboard (OSB) mill in Lanett, Ala. and sawmill in Leola, Ark. These curtailments are expected to take effect in the fourth quarter following orderly wind-downs.

These decisions are the result of continued weakness in demand for wood products used in new home construction and repair and renovation applications, according to the company. These actions are expected to reduce West Fraser’s OSB capacity by 500MMSF and southern yellow pine lumber capacity by 225MMBF on an annual basis.

“Over the last quarter, housing affordability continued to be a key constraint for wood products demand, which remains soft,” says Sean McLaren, West Fraser President and CEO. “We were also impacted by higher energy-related input costs. Our teams responded by running mills to demand, reducing inventory and controlling costs.

“Decisions like this are never easy because of the impact they have on our employees, their families and the communities where we operate. We are grateful for their hard work and contributions, and we are committed to supporting them through this transition.”