West Fraser Timber Stock

West Fraser Timber Co. Ltd. (West Fraser) operates as a diversified wood products company.

The company engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products (OSB, LVL (laminated veneer lumber), MDF (medium density fibreboard), plywood, and particleboard), pulp, newsprint, wood chips and other residuals and renewable energy with facilities in Canada, the United States (U.S.), the United Kingdom (U.K.), and Europe. The company is a leading producer of OSB. The company holds rights to timber resources that are sufficient to supply a significant amount of the fibre required by its Canadian operations and have long-term agreements for the supply of a portion of the fibre required by its the U.S. lumber and the U.K. OSB operations.

Markets

West Fraser’s products are used in home construction, repair and remodelling, industrial applications, papers, tissue and box material. The company’s products are primarily sold to major retail chains, contractor supply yards and wholesalers, as well as industrial customers for further processing or as components for other products. Changes in new home construction activity levels in the U.S. are a significant driver of volatility in lumber and OSB demand.

In Canada, the company’s lumber operations are located in Western Canada and produce SPF lumber, wood chips and other residuals. In the U.S., the company’s sawmills are located in the southern U.S. and produce SYP lumber, wood chips and other residuals. OSB operations are located in Alberta, Ontario, Quebec, the U.S., the U.K. and Belgium.

The company’s products are sold in markets open to a number of companies with similar products.

Lumber

Sales

Lumber produced at the company’s Canadian sawmills and sold to North American customers is marketed and sold from its sales office in Quesnel, B.C. while sales to offshore markets are made from its export sales office in Vancouver, B.C. Offshore sales activities are complemented by a customer service office in Japan. Lumber produced at the company’s the U.S. sawmills is marketed by its sales group in Memphis, Tennessee. From time to time, the company purchases lumber for resale in order to meet requirements of customers.

In 2022, sales of lumber were made to customers in the U.S. and Canada and to customers offshore, predominantly in China and Japan. Most lumber shipments to North American customers by the company’s Canadian operations were made by rail and the balance by truck. Lumber sales to North American customers by its U.S. operations were either customer pick up or delivered by truck and the balance by rail. Offshore shipments from both Canada and the U.S. were made through various public terminals in bulk or container vessels.

Shipments and sales of the company’s lumber products can be impacted by seasonal influences. Shipments from its Western Canadian mills can be affected by winter weather that affects rail and other transportation services. In the summer months, during fire season, logging, manufacturing and transportation can all be affected by wildfire activity or by evacuation alerts or orders in regions where the company operates. Operations in the U.S. South can be affected by hurricanes and other extreme weather conditions. Home construction activity which significantly influences the demand for the company’s products has historically been higher in the first half of the year and experiences a seasonal slowdown in the third quarter. A significant portion of the company’s SYP products are used in treated wood applications and demand for these products is often highest in anticipation of spring and summer construction activity.

Operations

The company has 34 sawmills and a wood treating facility at the Sundre, Alberta sawmill. The company’s Canadian sawmills, of which six are in B.C. and another six are in Alberta, produce SPF lumber of various grades and dimensions. The company’s 22 U.S. sawmills produce SYP lumber of various grades and dimensions.

Lumber production capacity is generally based on the operating configuration of the company’s sawmills for the period indicated.

North America Engineered Wood Products

Sales

The company’s NA EWP segment includes its North American OSB and Canadian plywood, LVL and MDF products. OSB and plywood are marketed from its sales office in Toronto, Ontario, while its LVL and MDF products are marketed from its sales office in Quesnel, B.C.

In 2022 most of the company’s North American OSB was sold to customers in the U.S., with the remaining production sold to Canadian customers and exported to Japan and China. Most of its plywood was sold to customers in Canada and its MDF and LVL was sold to customers in both the U.S. and Canada. Shipments from the company’s Canadian mills are made primarily by rail and from its U.S. OSB mills primarily by truck. Products are primarily sold to major retail chains and contractor supply yards. Some mill products are sold to industrial customers, remanufacturers and treating businesses for further processing or as components for other products.

The company’s OSB products are used primarily for sheathing, flooring and roofing in the construction of new homes or the renovation and repair of existing structures. NA OSB products are marketed under the following brand names: Durastrand pointSIX, Pinnacle and Stabledge (premium flooring), TruFlor pointSIX and TruFlor (commodity flooring), Rimboard, SteadiTred (industrial), QuakeZone, Windstorm, TallWall and Trubord (wall sheathing) and SolarBord (radiant barrier sheathing), Trubord (roof sheathing), TruDeck (flat roof sheathing for large industrial/commercial buildings) and StableDeck (utility trailer floors).

Canadian MDF products are marketed under the brand names Ranger, WestPine, and EcoGold both from the company’s sales office and through distributors.

Operations

The company’s NA EWP operations include 10 multi-opening press OSB mills and 3 continuous press OSB mills. Continuous press technology allows for the production of OSB in non-standard sizes and with specialized performance characteristics.

The company’s NA EWP operations also include three plywood mills that primarily produce standard softwood sheathing plywood, two MDF mills, each with the flexibility to manufacture varying thicknesses and sizes, an LVL mill, and a veneer mill that produces veneer for use in its Edmonton plywood mill.

Pulp and Paper

Sales

Pulp is marketed out of the company’s sales office in Vancouver, B.C. Most of the company’s sales for NBSK (Northern Bleached Softwood Kraft Pulp) and BCTMP (Bleached Chemithermomechanical Pulp) in 2022 were to customers in Asia (predominantly China) with some products shipped to the U.S. and other offshore customers.

Europe Engineered Wood Products

Sales

The company’s Europe EWP segment includes OSB, particleboard, MDF and related value-added products that are marketed from its sales office in Cowie, Scotland. The company’s OSB is sold primarily to customers in the U.K., Germany, BeNeLux and Scandinavia while the company’s particleboard, MDF and related value-added products are sold primarily to customers in the U.K. The company’s products sold within the U.K. and within continental Europe are shipped by truck and rail while its products sold to Scandinavia are shipped by vessel.

The company’s OSB and particleboard are used primarily in sheathing, flooring and other construction applications. MDF applications include cabinet doors, mouldings and interior wall paneling. The company’s European panel products are sold under the trademarks SterlingOSB Zero (OSB), CaberFloor (particleboard), Conti (particleboard) and CaberWood (MDF).

History

West Fraser Timber Co. Ltd. was founded in 1955.