05:11 PM EDT, 09/19/2024 (MT Newswires) -- West Fraser Timber ( WFG ) on Thursday said it will shutter its Lake Butler, Florida, sawmill by month's end for an indefinite period due to weak lumber markets and high fiber costs.

The company said the measure will idle 130 employees, who will be offered roles at the company's other operations, and reduce its U.S. lumber capacity by 110-million board feet.

"High fiber costs at Lake Butler and the current low-price commodity environment have impaired the ability to profitably operate the mill. The indefinite curtailment of Lake Butler sawmill better aligns our U.S. lumber capacity with demand," the company said.

It expects to take a charge against its third-quarter earnings to account for the cost of the closure.

The company's shares closed up $3.45 to $129.43 on the Toronto Stock Exchange.