West Fraser Cuts 1.3 Billion Sq Ft of OSB as Housing Slump Deepens

Alberta and Georgia mill curtailments expose post‑pandemic volatility, with demand recovery still years away.

The world’s largest producer of oriented strand board (OSB), West Fraser Timber, will close its High Level mill in northern Alberta next spring, taking out more than 860 million square feet of production capacity from the North American market. The closure, announced late last week, comes on top of the indefinite idling of one line at the company’s Cordele, Georgia, facility, which has been offline since late 2023. Together, West Fraser Timber will remove 1.3 billion square feet of OSB from supply, underscoring the sharp slowdown in homebuilding and renovation activity.

West Fraser said the decision reflects “a significant weakening of OSB demand,” a trend that has persisted since mid‑2023 as higher interest rates cooled housing starts and remodelling projects. At the same time, it expects to record a $200 million asset impairment loss in the fourth quarter of 2025 tied to the High Level curtailment. “Today’s decision is the result of a significant weakening of OSB demand,” West Fraser stated, adding that it remains committed to supporting employees and communities affected by the changes. We understands that 190 workers at the High Level site will be impacted by the closure, though West Fraser said it will seek to redeploy staff to other operations where possible.

Article created by our partner – Jason Ross – Wood Central

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