Western Forest Products Inc. (“Western”) announced that effective March 23, 2020 it will curtail its manufacturing facilities currently operating in British Columbia, Canada, due to the evolving COVID-19 pandemic and its impact on operating conditions. The planned curtailment is scheduled for up to one-week.
During this period the company will re-evaluate business and operating conditions to determine when these manufacturing operations will resume. Packaging and shipping of lumber products will continue to meet customer requirements. The ongoing curtailments at the company’s Cowichan Bay and Ladysmith sawmills are expected to continue into the 2Q due to limited log supply and weak market demand.
Western will also take steps to minimize its planned capital expenditures in 2020. The company plans to incur only safety, environmental and committed capital expenditures in the near-term. Going forward discretionary capital will remain on hold until there is greater operational certainty.
Western is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets.