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West Fraser Timber is indefinitely curtailing operations at its Huttig sawmill in southeastern Union County.
The Vancouver, British Columbia company also said that it will close its Maxville, FL sawmill.
It cites high fiber costs and soft lumber markets for the actions.
West Fraser is the only significant employer in Huttig, which has a population of 448 people. The company said the Huttig shutdown will affect 140 workers. About 80 people will lose their jobs in Maxville.
West Fraser expects to mitigate the impact on affected employees by providing work opportunities at other company operations. In Arkansas, the company also operates a sawmill in Leola, which is southeast of Malvern.
The actions will reduce West Fraser’s U.S. lumber capacity by approximately 270 million board feet.
High fiber costs at Maxville and the current low-price commodity environment have impaired the ability of both mills to profitably operate, the company said. The closure of Maxville and the indefinite curtailment of the Huttig sawmill better aligns West Fraser’s U.S. lumber capacity with demand, the company said.
West Fraser anticipates taking restructuring and impairment charges of approximately $50 million in the fourth quarter of 2023 associated with this announcement.