{"id":10983,"date":"2023-09-25T10:00:00","date_gmt":"2023-09-25T00:00:00","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=10983"},"modified":"2024-10-21T20:27:42","modified_gmt":"2024-10-21T10:27:42","slug":"west-fraser-top-osb-producer-exits-pulp-for-mass-timber","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/west-fraser-top-osb-producer-exits-pulp-for-mass-timber\/","title":{"rendered":"West Fraser, Top OSB Producer, Exits Pulp Assets for Mass Timber"},"content":{"rendered":"\n

West Fraser, one of the world’s largest integrated forestry companies, has sold two pulp mills in a move that underpins a global shift from low-value, high-volume products to more flexible, higher-value production.<\/a><\/p>\n\n\n\n

The US $120m transaction includes the Quesnel River Pulp mill in Quesnel, British Columbia, and its Slave Lake Pulp mill in Slave Lake, Alta and covers all “woodlands operations and timber holdings in Alberta and a long-term fibre supply agreement for the Quesnel mill.”<\/p>\n\n\n\n

Millar Western Forest Products will now operate the mills, part of the Atlas family of businesses.<\/p>\n\n\n\n

The announcement reflects a transformation in pulp and paper fundamentals as global companies consolidate plans amid a dwindling timber supply<\/a>.<\/p>\n\n\n\n

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Earlier this year, West Fraser shut down operations at the Cariboo Pulp and Paper in Quesnel due to insufficient pulp supply. (Photo Credit Supplied by West Fraser)<\/figcaption><\/figure>\n\n\n\n

Earlier this year, West Fraser halted operations at Cariboo Pulp & Paper in Quesnel<\/a> as the Vancouver-based company devised a plan for its future.<\/p>\n\n\n\n

At the time, the company said the decision resulted from a decline in sawmill residuals’ availability, which it says is due to infestation, fire and government policy decisions.<\/p>\n\n\n\n

The company posted a USD 173 million second-quarter loss<\/a> in July, attributing much of its falling profitability to a weak pulp and paper market.<\/p>\n\n\n\n

“Declining pulp prices led to a significant inventory write-down,” West Fraser said. “As a result, our pulp and paper segment experienced higher losses than expected.”<\/p>\n\n\n\n

On Friday, West Fraser CEO Ray Ferris said the pulp mill sale will help the company focus on its wood-building products business.<\/p>\n\n\n\n

“We believe this transaction provides these two great assets and teams a strong strategic future while allowing West Fraser to focus our resources on our objective to be the premier wood-building products company in North America,” Mr Ferris said.<\/p>\n\n\n\n

Mr Ferris, who will step down as CEO and President of the company in favour of Sean McLaren in early 2024<\/a>, has driven the push to high-volume production. <\/p>\n\n\n\n

West Fraser is the world’s largest producer of oriented strand boards – or OSB – an engineered mass timber product growing in popularity due to its cost-effectiveness and sustainable production.<\/p>\n\n\n\n

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A chance to look inside West Fraser (Norbord) factory at Inverness.

It produces 16,000,000 sheets of OSB (Oriented Strand Board) every year. https:\/\/t.co\/BsrUUdQix4<\/a><\/p>— Andrew Heald (@andyheald) February 3, 2022<\/a><\/blockquote>