Western Forest plans B.C. sawmill curtailments for Q4

Executive Summary

• Western Forest Products Inc. announced temporary operating curtailments at its British Columbia sawmills for the fourth quarter of 2025, following similar curtailments in the third quarter.
• These combined actions will reduce lumber production by approximately 50 million board feet in the second half of 2025, representing about 6% of the company's annual lumber capacity.
• The curtailments are driven by weak market conditions, increased U.S. softwood lumber duties, lack of economic log supply, harvesting permitting delays, and a strike by United Steelworkers Local 1-1937.

Key Details

• Production Impact: Approximately 50 million board feet reduction in lumber production during the second half of 2025.
• Capacity Reduction: Represents approximately 6% of the company's annual lumber capacity.
• Total Capacity: The company has a total lumber capacity of 780 million board feet across six sawmills.
• Specific Mill Status: The Chemainus sawmill, which was curtailed for the entire third quarter of 2025, will remain temporarily curtailed for the entire fourth quarter of 2025.
• Operational Adjustments: Curtailments will be implemented through reduced operating hours, an extended holiday break, and reconfigured shifting schedules.
• Market Drivers:
  • Persistently weak market conditions.
  • Significant increases in U.S. softwood lumber duties implemented in August 2025.
  • Lack of available economic log supply.
  • Continuing harvesting permitting delays.
  • Strike by United Steelworkers Local 1-1937 at La-kwa sa muqw Forestry Limited Partnership.
• Company Footprint: Western is a major employer on Vancouver Island, supporting approximately 3,300 jobs in nearly 20 communities in British Columbia.
• Operational Scope: Operations include four remanufacturing facilities and two glulam manufacturing facilities, with timber sourced from long-term licenses, First Nations arrangements, and market purchases.