West Fraser Reduces Oriented Panel Production Indefinitely

West Fraser announced an indefinite reduction in production at its Oriented Panel (OSB) plant, a move aimed at addressing current market challenges and global price pressures. The decision was prompted by weak demand and declining prices in the oriented lumber (OLB) market, which have impacted the plant’s profit margins. This action also reflects the company’s response to fluctuations in supply and demand, while striving to maintain operational stability. West Fraser stated that the production reduction will allow it to rebalance production and demand and improve resource efficiency. The company will continue to closely monitor market conditions to determine the appropriate time to resume full-capacity production. This decision reflects the challenges facing the lumber industry in North America and Europe, which are affected by energy prices and changes in the construction sector. This move is expected to impact oriented panel availability in the market for some time, potentially leading to price fluctuations both locally and regionally. The company reaffirms its commitment to meeting essential customer demand while managing its resources efficiently during this period.