West Fraser Provides Update on Business Operations

In a press release dated May 26, 2020, West Fraser Timber Co. Ltd. provided an update on business operations in addition to the voting results for the election of directors.

Update on Business Operations

Since the middle of March and throughout April in response to rapidly changing market demand and to comply with mandated and recommended health and safety guidelines related to the COVID-19 pandemic, we significantly reduced lumber and plywood production. During May we have substantially resumed lumber and plywood production with only a few facilities operating at less than full schedules. Our downtime at Cariboo Pulp was slightly extended to bring forward planned maintenance from the fall. Cariboo Pulp is in the process of restarting operations this week. We will continue to adjust our operating schedules in both the U.S. and Canada as necessary.

In respect of lumber, both prices and volumes have rebounded compared to the end of the first quarter, particularly for SYP. Notably, demand for repair and remodel and treating applications appears to have been very resilient. We do expect that demand for our wood products will be volatile over at least the balance of the year in response to the ongoing economic and other impacts of the COVID-19 pandemic. For our pulp operations, tissue demand has been strong but the impact of reduced demand for printing and writing applications is starting to materialize.

Compared to the end of the first quarter, available liquidity has improved and inventories, particularly logs and lumber, have been significantly reduced. The previously announced Dudley, Georgia sawmill complete rebuild project remains on schedule.

About West Fraser

West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips, other residuals and energy with facilities in western Canada and the southern United States.

Contact:

Chris Virostek – Vice President Finance & CFO – (604) 895-2700

Source: West Fraser Timber Co. Ltd.