West Fraser Reduces OSB Capacity

Executive Summary

• West Fraser will indefinitely curtail its High Level, Alberta OSB mill in spring 2026, reducing total OSB capacity by 860 million sq ft.
• The company will also keep one production line at the Cordele, Georgia OSB facility idle indefinitely (440 million sq ft).
• West Fraser expects to record an approximately $200 million asset impairment loss in Q4 2025 related to the High Level mill curtailment.

Key Details

• Capacity Reduction: 860 million sq ft (3/8‑inch) removed from High Level mill; additional 440 million sq ft idle at Cordele, GA.
• Reasoning: Significant weakening of OSB demand in North America.
• Workforce Impact: Approximately 190 employees at the High Level site will be affected; West Fraser plans to offer alternative work at other operations where possible.
• Asset Impairment: Expected $200 million impairment charge to be recorded in Q4 2025.
• Timeline: Wind‑down and consumption of existing log supply to occur in spring 2026; Cordele line remains idle indefinitely.
• Historical Context: High Level mill has been part of West Fraser since the OSD business acquisition in 2021.

Notable Quotes

(No direct quotes were provided in the release.)