West Fraser to Close Lake Butler Sawmill

West Fraser Timber Co. has announced the indefinite closure of its Lake Butler sawmill in Florida due to high fiber costs and a downturn in the lumber market, impacting around 130 employees and reducing U.S. lumber capacity by 110 million board feet. The company plans to mitigate the impact on employees by offering work opportunities at its other operations. This decision reflects the challenges posed by a low-price commodity environment that has made profitable operation of the mill impossible. West Fraser expects to incur an impairment charge in the third quarter of 2024 as a result of this closure. The company has previously made similar cuts, having closed a sawmill in Maxville, Florida, and indefinitely closed another in Huttig, Arkansas earlier this year. Market analysts have indicated that sluggish housing markets and low demand for repairs are contributing to the weak lumber market conditions.