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Weyerhaeuser reduces OSB production by 15 % in April

01.04.2020 − 

As a reaction to the decline in demand recorded in the course of the Corona crisis, the US forestry and timber group Weyerhaeuser will also reduce production at various locations. The measures, which will initially run until the end of April, are to be implemented through temporary plant closures and an adjustment of shift schedules. This is expected to reduce OSB production by 15 %. For Engineered Wood Products (EWP) Weyerhaeuser has announced production cuts in the range of 15-25 %. In addition, about 20 % of the sawn timber capacities are to be withdrawn from the market.

 

In yesterday's announcement, Weyerhaeuser also announced various measures to improve financial flexibility. Among other things, non-essential operating expenses will be minimized, and the investment budget of US$ 360 million originally estimated for 2020 will be reduced by US$ 70-90 million. In addition, Weyerhaeuser has increased its cash position by drawing US$ 550 million from a US$ 1.5 billion revolving credit facility running until January 2025. Thus, the credit line still has a remaining volume of US$ 950 million.

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