HUGULEY, Ala. — West Fraser Timber Co. plans to indefinitely curtail its oriented strand board mill in Lanett and its lumber mill in Leola, Arkansas, a move that could affect an estimated 123 jobs in Huguley.
Employees learned of the decision Wednesday. The curtailments are expected to take effect in the fourth quarter of 2026, following orderly wind-downs.
“We are aware of the announcement and are working with West Fraser and employees for the best resolution,” said Chris Busby, executive director of the Chambers County Development Authority.
West Fraser attributed the decision to continued weakness in demand for wood products used in new home construction and repair and renovation. The company said the closures will reduce its annual oriented strand board capacity by 500 million square feet, measured on a 3/8-inch basis, and its southern yellow pine lumber capacity by 225 million board feet.
The company expects to record a fourth-quarter asset impairment loss of between $200 million and $220 million related to the curtailments.
“Over the last quarter, housing affordability continued to be a key constraint for wood products demand, which remains soft,” West Fraser President and CEO Sean McLaren said in the company’s third-quarter results. He also cited higher energy-related costs, saying the company had been running mills to match demand, reducing inventory and controlling costs.
With no near-term visibility of improved demand, McLaren said, West Fraser decided to align supply with customer needs. He said the decision reflected difficult market conditions, not the dedication or performance of employees in Huguley and Leola, and that the company is committed to supporting affected workers through the transition.
West Fraser reported third-quarter sales of $1.363 billion and a net loss of $80 million on Oct. 28. Its total operating loss was $92 million. The company’s Lumber segment posted adjusted earnings before interest, taxes, depreciation and amortization of $34 million, including a favorable $12 million duties adjustment. North American engineered wood products recorded adjusted EBITDA of negative $4 million.
For 2026, West Fraser expects shipments of both SPF and SYP lumber, and North American OSB, to be at the low end of its previously announced ranges. The company cited current operating conditions, soft demand and tighter inventory management. It maintained its Europe OSB shipment target and said capital spending is expected to remain within its forecast range of $300 million to $350 million.
West Fraser reported liquidity of $1.2 billion at the end of the third quarter and said it repaid $55 million in operating loans. The company also said U.S. housing starts were running at a seasonally adjusted annual rate of 1.22 million units in September, while permits were issued for 1.40 million units.
