West Fraser Taking More Downtime

Wednesday, July 29, 2009 03:58 AM

Prince George, B.C.- For the second time in as many months, West Fraser timber has announced lumber production curtailments.

The company has announced it will take shutdowns of at least two weeks as the mills in Houston, 100 Mile and Chasm starting August 4^th.

The same mills had taken similar market downtime at the end of June.

The company says the curtailments are the result of continuing weak markets and a strengthening Canadian dollar.

The decision to restart operations will depend on market conditions which will be reviewed on an ongoing basis.

West Fraser’s 2^nd quarter results show the company has suffered a year to date loss of $122 million dollars. With half a year to go, the losses could surpass the red ink recorded in 2008 when West Fraser recorded a loss of $137 million for the whole year. At that time, CEO Hank Ketcham said 2008 was “The worst year in the history of the company.”

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Posted on Wednesday, July 29, 2009 03:58 AM in News by 250 News

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Comments

Posted by: sportsman on July 29 2009 1:43 PM

It isn't going to get any better for a long time yet. The recession is far from over despite what the bank of Canada says.

Posted by: Born in BC on July 29 2009 3:25 PM

I would suggest that the real issue for lumber companies is that Canada is really of little consequence. If Canada is doing ok and the US is still in shambles then West Fraser/Canfor/whoever will still not make any money.

Posted by: mackbc on July 29 2009 3:55 PM

As long as the COMPANYS keep producing lumber for an over supplied market the price will stay down and the westfrasers / canfors or who ever will continue to lose money and the price will stay below the production cost for all the mills .You would think that stopping production and hitting the reset button and drying up the supply would make more sence then continuing to supply a market and keeping your own price down . So stop for 4 to 6 months and let the feds pay all EI and then maybe some attension will come from the partys that need be and the industrie will get back on its feet .Remember the USA use to build about 1.5 millon houses now less then 500 thousand thats two thirds less then say 2005/6 we need to control the supply and sooner then later the price will go up and when demand goes up you increase prodution not before .

Posted by: Denaljo on July 29 2009 8:16 PM

Canfor & West Fraser can play this game because in the long run it will drive the small boys out.

Posted by: mythoughts on July 30 2009 2:56 PM

they also have orders to fill & customers to keep happy.