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. Wood Central 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.
OSB markets have reeled following the boom-and-bust homeowner market
The announcement highlights the volatility that has gripped OSB markets since the pandemic. Prices that soared during the surge in homebuilding and do‑it‑yourself projects have since retreated, forcing producers to recalibrate capacity. Analysts note that West Fraser’s retrenchment is among the largest in the sector, signalling that demand recovery may take longer than expected. Market research suggests North American OSB demand will grow at a modest compound annual rate of about 4–7 per cent through 2030. Still, near‑term weakness remains pronounced as housing affordability challenges weigh on construction.
For High Level, a town that has relied heavily on the mill for jobs and economic activity, the curtailment represents a significant blow. Local officials have voiced concern about the impact on families and businesses, though West Fraser has pledged to provide transition support and redeployment opportunities.
- To learn more about the challenges facing homeowners and house builders across the United States, click here for Wood Central’s special feature from June 2025.
