Weyerhaeuser announces temporary mill curtailments, reduced shifts
By Maria Church
Weyerhaeuser Company has announced its response to the COVID-19 pandemic, outlining plans to reduce operating capacity at its lumber, OSB and engineered wood facilities.
“Given the broad-based uncertainty regarding the ultimate economic impact of the COVID-19 pandemic, we are taking action to position our businesses for changing market dynamics and prudently enhancing our financial flexibility,” Devin W. Stockfish, president and CEO, said in a news release.
“Weyerhaeuser is operating from a strong financial position, and we have demonstrated that the company has the cost structure, agility, and resilience to deliver industry-leading performance through rapidly changing market conditions. I am confident that we are well positioned to manage through this disruption and extend Weyerhaeuser’s track record of creating long-term value for shareholders,” Stockfish said.
The company plans to cut lumber production capacity by 20 per cent, OSB capacity by 15 per cent, and engineered wood products capacity by 15-25 per cent through temporary mill curtailments and reduced shifts at unspecified manufacturing facilities.
The company says it is actively working to mitigate minor supply chain disruptions related to transportation and delivery of export logs to some Asia locations.
“We have taken significant steps to protect the health and well-being of our employees, consistent with Weyerhaeuser’s core values,” Stockfish said. “Safety will remain the top priority in every decision we make as we continue to serve our customers.”
Weyerhaeuser is also taking steps to limit or defer non-essential operating expenses. The company will be reducing 2020 capital expenditures by approximately USD$70-90 million.
Read the full release here.