West Fraser Timber announced that its sawmill in the small town of Fraser Lake in British Columbia, western Canada, will close permanently after a gradual reduction of its operations.

The company attributed its decision to no longer being able to obtain economically viable fibers in the area. It also pointed to the current weakness in the lumber markets.

The closure decision affects 175 employees, and the company aims to mitigate its impact by offering them jobs in other operational centers it owns.

The closure of the Fraser Lake sawmill will reduce the company's lumber production capacity in Canada by approximately 160 million board feet.

West Fraser Timber's headquarters is located in Vancouver, the largest city in British Columbia, where the lumber industry is a pillar of the economy.

This decision comes after the company earlier this January announced the closure of its sawmill in Maxville, Florida, and the indefinite scaling down of operations at its mill in Hatties in Arkansas.

Fraser Lake Mayor Sarah Story says the sawmill set to close is a major employer in the town. Fraser Lake has around one thousand inhabitants.

Fraser Lake is part of the Resource Benefits Alliance in Northwest British Columbia (RBA), a group of about 20 local government administrations demanding a revenue-sharing agreement with the provincial government.

The goal of such an agreement is to secure sustainable funding for local communities to repair infrastructure and make efforts to attract new residents and workers.

In September 2022, a memorandum of understanding was signed between the Alliance and the British Columbia government to cooperate in assessing the impact of current and new industrial developments in the northwest of the province.

Mayor Story says she hopes the Alliance will contribute to enhancing economic development in Fraser Lake and creating good local job opportunities.