WFG - Earnings call transcript Q2 2021 | West Fraser Timber Co. Ltd.

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Operator

Good morning, ladies and gentlemen, and welcome to the West Fraser Q2 2021 Results Conference Call.

During this conference, West Fraser's representatives will be making certain statements about potential future developments. These forward-looking statements include certain statements about West Fraser's future financial and operational performance, including the impact of foreign exchange rates, credit ratings and mill maintenance shutdowns; West Fraser's business outlook, including forecasted US housing starts, market conditions, demand for products and available supply and expectations concerning costs; West Fraser's capital plans, including the completion and ramp-up of capital projects and the benefits of such projects; the softwood lumber dispute, including adjustments to duty rates and related proceedings, the integration of Norbord into the West Fraser business and expected synergies and recent developments, including the impact of wildfires on production and shipments and the completion of our substantial issuer bid. These statements include forward-looking statements within the meaning of Canadian and United States securities laws and are intended to provide reasonable guidance to investors. The accuracy of these statements depends on a number of assumptions and is subject to various risks and uncertainties that may cause future events to differ materially from the events implied by these statements. under on of of its discussion the including the matters MD&As. depend affect that business quarterly and will in company's as those ability uncertainties set by the company described and analysis outcomes as a annual other factors number could plans, the supplemented Actual company's and risks management's uncertainties risks to in execute out United investors States Fraser's West These filings and or SEDAR EDGAR for assessed for can website Canadian investors. through on be should listeners relying forward-looking Accordingly, caution exercise upon statements. in After Instructions]. the speakers' session remarks, there will be a question-and-answer [Operator Mr. Ferris, you may begin your conference.

Raymond Ferris

a until Chris investors and before for I'll start for our is we by do expires, any Senior to Chris that to remarks, beyond This absence everyone, substantial today any any which Today, XXXX and addressing the has questions expire XXXX. Marketing provided Thank comments already take results quarter to related developments in release thank with issuer Further, of our require and after we those you, on what of and additional make then Vice team. good will or our will after call. important I'd bid a review from comments, those concluding make listen, conference scope the call disclaimer. Chris morning, disclosures. news a to your Virostek, Michelle, August to housekeeping or intend members President, a few welcome QX executive in McIver, to already call questions. we'll pass been analysts and our of earnings items. of Development; limit of to you outlook market refrain this our and comments Virostek then our provided Corporate like to that QX our intended joined in currently company and Well, I'll I my opening morning's XX, disclosures, several not material we'll make Chief second I'm the Fraser's and Officer; couple morning, and Financial West

will at Finally, a have Pacific. in Eastern XX analyst virtual held September X:XX earnings that we you release XX:XX event p.m. have to investor on Time, announced noticed be and our

building an We approximately way, the we'll products, to a have duration, event on to of being for for are participating hours but is let's a to out building society later low-carbon of required renewable been part sustainable Manufacturing, climate in move for cycle live simply the planning one this part details and we for in. the important that materials two very With be a a forest required and further that for a industry economy, our time life solution and captivating It operate of by sustainable its change renewable of from date. products has forest provides objectives. quarter. in meet the comments at the that meaningful forest

This West managing and We've the Columbia, Alberta is as and of sustainability, commitment in the will tree as program. of our X communities we forests been pleased which I environment BC, sustainably share part billionth the a than Fraser summer, to topic this and that On operate. British years. in plant in sustainability reforestation to am XX for proud more long-standing

two we plant a and company, the milestone for This its harvest carbon all many resource our we employees, in part others. it significant sequestration. climate For woodlands contractors, community renewable the goals of It's supporting have we achieved without place. trees, in management support global and to two the tree is and stakeholders seedlings that every manage, we contributes of couldn't of our change the

remain -- West results to our to Fraser disruptions, agile remained strong continue for focus that and business and we've report our products. minimizing spurring diligently communities. COVID-related an for and home quarter our and thanks employees pleased agile in of proud construction at to experienced QX on what strength recovery continued building another of work to accomplished demand the remained US North I'm overview. on as wood so safety activity, health We Now America, far. we we In

the plywood, exposure be measured sales and the fact, this repair of appears and since pullback greater home wood In remodeling. aging we and housing home expect was Despite balance slowing remodeling strong homes for levels as XXXX. construction in engineered segment starts The remain remodeling by activity repair recently products relatively which what and and reached new stock. not activity, new by than of a our seen supported longer has repair short-term in evident term, lumber to market to more a to

On the up the make Dudley, the progress in side, new ramping quarter, operational complex the lumber up. Georgia manufacturing in became mill fully and to continues second

demand On the recent to recovery experienced OSB OSB side, up supply to stronger-than-expected quarters. with in continued keep in the struggle

this the ramp its mill, annual that began introduction, rated pass $X.XXXXX progress now to March. the response midst we to Chris you up safe in towards customer capacity a to on to and demand, over of pandemic, and very basis, square we're panels ship feet track which I'll increased in Quebec date. the As Virostek. Chambord, produce pleased the Chambord a our aware, and XXX on million call of remains with of announced to restart are late in With

Chris Virostek

and us. good for joining everyone, and you Ray, thank Thanks, morning,

the periods, longer reminder, calculation for last elevated of earnings now second of a and results strong most quarter demand we demand versus continued we and full in adjusted strength of results As Demand was May, in norms. X through as housing reported lumber financial include was export Norbord. net And months three recovery no our second historic in early all year exclude in and the from consolidated quarter. of When this construction, January EBITDA. particular, OSB duties a our for new comparative

quarter last consolidated to panel due of of prices. Recall full three the that well reduction, as to generated EBITDA one-time non-cash results, a EBITDA from quarter, goods an adjusted West $X.XX quarter, billion there their the purchase Fraser $X largely value fair second adjustment the cost for addition results the sold financial in prior a price performance, to $XX acquisition-related that was for Norbord's higher and closing In of terms million which as acquisition. inventory Norbord lumber in raised accounting was impact their the of our financial months upon billion of up

Moving results. onto segmented

partially segment EBITDA EBITDA costs. versus quarter, of prior Lumber to finally, In owing Our $XXX the million in inflation. in higher quarter. material quarter, the our prior was driven from primarily by Paper with of higher OSB the pricing, a quarter reported million than and pricing. in million the pulp EBITDA in quarter European in Pulp $XX EBITDA higher $XX increased Norbord quarter, segment to the shipments, as plywood in which cost & adjusted of adjusted And addition Adjusted by in months million million fiber the EWP American for due second $XXX EWP the X and million million in higher $X.XXX first higher $XXX pricing offset as billion segment, fiber up $XX $XX and North XXXX, second segment first from more raw increased offset the from the well full gains adjusted to to results

approximately now million expecting $XXX OSB and we $XXX are to million. see lead continue million market to on as projects times demand strength guidance higher million allocation due Shifting balance our the $XX grow. capital approximately continues in were some second sheet. lengthening for quarter. in Europe expenditures underway, capital the capital spending Capital currently that versus Note in quarter, to recent in range be prior to the target of of slightly our to the XXXX We expenditures $XXX than prior to

to are of In and believe as of average We back an course at appropriate share second the view shares issuer price West bought our we excess CADXX.XX. value. use $XXX Fraser trading million continue quarter, an of shares below normal bid buybacks our worth we under cash, intrinsic

an an million authorization in million quarter, us also aggregate amended NCIB X.XX acquire of We our to X.XX shares. second shares the additional for allowing

remain Exchange York level pleased we've U.S. Fraser trading the shares for with of also We Stock liquidity addition West New the with listing. the seen of

which XX% and Canadian total of in regularly volume exchanges February reaches US trading now our trading of on Our XX% volume, trading than US less for volume. our accounted daily total

our million we liquidity last our rationalize strong developments and annual the in allocation, over materially, redemption exiting recent of total reduce the retired an of with the quarter with with billion integration. XXXX financial $X.XX QX capital debt which early by of Leverage I'll notes, quarter. aggregate for approximately available increased of on that, $XX $XXX million debt, With billion results, outlook XXXX Ray ultimately now our the and Norbord cash call on the of an In and $X.X million Norbord combination XXXX, help net and exiting the modest, Norbord on have $X.XX high-yield interest Given quarter costs up update from structure. back the was to capital turn billion. $XXX liquidity, will

Raymond Ferris

Chris. Thanks,

homes wood, building mortgage markets, to incentives to The new terms continues housing for our demand deficit to than and strong more greater continued In trend drive do-it-yourself products low which rates people create single-family and single-family of projects. wood of for renovations underlying multifamily. end ongoing toward work consumes purchase homes, formation our home the undertake and has from more

underpinned many factors outside of and we never wood, markets, control market temporarily effects of including accepted. of the COVID-XX, and building optimistic that more of are While influence That about with is the long-term our we environmental there more uncertainty constructive implications economic recognize benefits which can around been have fundamentals. clear the by remain

to result seeing about and same conditions. from has due in in we're time, The demand, the of previously evacuation products our order levels, we British Canada Columbia activity transportation to temporary at important our transportation log operations that availability, had challenges, at as short-term and Western provincial risks of as cost heat extreme rail. and I Western adjust province wildfires its by wildfires areas resulted However, recognize our Canada, raw some in to a In time done. logging of a wildfire variable that operating recently and dry truck the declared and rely overall and suspensions may, on it's access of to and our our and material products. we move shortages, are impacting situation This levels address to finished inventory areas affecting has orders, state we networks as the are of emergency to time, difficulties, in production wildfire discussed, moving

the As production half a XXXX and be impacted. shipments of result, second in our may

relatively a servicing quarter's last cash capital earnings and On trend. key More call, that community these expect our we to keeping our priorities. noted allocation are thoughtful, seeing customers' accumulation and needs was the us patient, focusing on times be during safe in we our and new considerable importantly, challenging remain our that And could you employees balanced strategy.

that price also of to up a substantial is results you're sharing with which per auction offered a key by with Dutch to this As August shares. available. to modified tender results those expire taken to and billion We CADX way we've of SIB set common on with tender towards you range SIB share the CADXX commitment, this month of forward XX, is of early we our commencing XXXX. step repurchase process have CADXX when become issuer aware, a This look bid, to a

how even to the our the remains impressive high. of company to and team terms The previously, momentum noted continues through integration of engagement Norbord and synergies our make work level as and of and building better. rapidly work In

we can over Now driving targeted throughout track priority company. to our a XX achieve Safety next synergies see the we injury we severity remains and it, the lows key on incidents into months. to to and eliminate much of have annual serious Despite that to months company, I XX We continued are that know confident work continue only overall incidents more rates new injuries. to tell do. five million to us we six the $XX for remain

of Western and am strength obstacles all of while across resiliency perseverance employees the and company, the strong to continue results, is as with in many the and I heavy impressive. proud and the ongoing and Canadian thankful well people the The for our still of dealing pandemic do most challenges employees It's wildfires. safety risk of the delivering lifting of. dedication Our this evolving operational as

company significant and contributions retiring the over is Finally, after recognize Vice his and culture to like Brian he from key Products West I of years. distinguished our and has while Balkwill, want acknowledge President West I'd to to career. driver a leader made Wood Brian a the to Fraser being Fraser company of XX West for Canadian the long Fraser helping advance last

that our questions. than We that, and company have to ball Thank Brian, is to move and be you'll people congratulations we'll we our next as is found has operator in your thing the on the call one better job back that. the move done to turn it missed. to that the it you for leave tell Brian With you, adventure. you

Operator

Your question of BMO. first Mark [Operator Instructions] Wilde comes from

Mark Wilde

and more first disclosure want I and just on think by of in And seen the -- be maybe business? we're thoughts of want of of to you export curious price all, deck side start slide I on sort and you that's good your the flowing any to, acknowledge detailed the that magnitude on quarter, from getting speed color of congratulating sort again, also correction appreciate quarter. of Ray, your out, that. I'd we've I and better a much how kind lumber a the over each into that about To start I MD&A, just

Raymond Ferris

improving love Well, take ask bit look, again, that and little and Mark. -- really -- the really I'm appreciate feedback. export thanks the the but for detail, and going a of about that's I'd it to around kind we Robert think. comes Look, question slide maybe Chris McIver of to that, when that. deck kind the to are that's I to markets, talk Chris And

Chris McIver

speaking OSB clarify, to about side both? speaking the you just are more lumber Or Mark, generally on you're the than side?

Mark Wilde

could. you if both, about Actually,

Chris McIver

think we a how So I we, they is a prices quickly yes, how I'd at have off, up. mean, didn't bit went but quickly reflection say I say are if a be remiss bit that surprised that of to come really I the

So believe too at we've because too a little more we low we actually might thought We level bit a the we come and high, not did time muted correction. and well to surprised bit the be think gone went take more expect a fundamentally in time. We're as a it to probably this in short-term bit we've the correction. little we

is it where is think market is I stronger for stability probably more bit. little That side we this on we're a right better. So bit bit seeing OSB time a up in are a And hung lumber sales picking the little panels lumber. at a think little quite now, frankly, a demand behind. the than for

we not think of was we more up. very seeing during lot difficult actually that couldn't last to a regards to we go, So bit export, And to to the keep demand with got a to very we there until and some of export we're just levels still participate the it's find believe And sort it bottom in year. there, but They over America. But Japan prices up. markets similar are got North saying holding this will. run-up

there weakness the bit We see while. a expect of to over next

putting is there, quite way, some because the of in we're but pricing some market that quite China, product pretty favorable. significant frankly, more we've So not reentered, looks good. a over

never We reduce the and bit we're up of volumes, markets. did any exited now. little we a export those our picking So

Mark Wilde

some mean, But time. MD&A. live a of if made those It's you I And this get the us kind complicated BC would who then of fiber give we year through, us expect you half the cost know you've go of in this can if your I that to got to through sense move half the set year. into just walk us adjustments every how and some of don't wondered, of of I second next as first over Ray, just fairly day. could you of

Raymond Ferris

try to do I'll that.

of pretty year. this for it's second the half straightforward think I

that impacts available X. the publicly on Stumpage but it's differently, can to different will in. think that region it be stumpage may you're operating rise it's see significant a increase. everyone be on so October But going depending -- somewhere I the

the but in somewhere And more could be that. range, than less $XX or it

an to have going And so it's impact.

obviously be tied We happen. two that But of pricing open stumpage. logs things are can quota two of which market different. purchased on a logs, lot those we and got you've the So with purchased directly the

would bit to And becomes down more bring -- things those change, comes really quota much And would how we go where it Mark. conditions complicated. that's those how after, So in. it that purchase little we much a

very predict. it's difficult to So

The things what's And is land other is, areas despite part aspect economic in require. our the those to volumes is that, policy. order access get we the in to certain whatever ability that the base

in a be that pretty a -- half. difficult Mark. It I be half. it's it things And are But second think will it well-known probably so industry, I would was is first difficult will our are I think difficult probably say view -- the that a those

Mark Wilde

you sort do prices? BC now industry position current of finally, kind where to overall about have of market any sense And relative of the cost right is the lumber

Raymond Ferris

Probably same as the yours, Mark.

of cost -- think, And I'd again, everybody you any I what high can't logs probably And I different. direction area in than pretty area the that. on, code. is we're the are mean, think think we're I same all I is But for everyone. in that more give I But think so say. code, I

Mark Wilde

And question. then actually, I guess, one other

res? Just people from both of more doing are we stand customer and just variation or or maybe box inventories the producers business of Chris some any McIver, versus to a lot who level in there's and from the tied terms mill sense have R&R you been whether new who with at about big level maybe lumber maybe where

Raymond Ferris

run maybe in in it's remember Just we say get Columbia. kind I'll weigh to there, just Chris I that business kind British One, of to important of integrated before an things. X

the we course, run have BC. lumber of plywood, and, integrated MDF, of other we a in models So in company. And course,

of think up MD&A, at it's look half well. first the when when note quite production holding important you pretty that. are Many important the to businesses our balanced. I shipments, it's to And recognize I and So look at other

we people pretty of description the probably think we I a where year, where are it good knew think I gives entered and currently.

So -- kind of Chris -- but to going answer I'm let talk that.

Chris McIver

X are or asking is So of reasons their things a I and few a think different for I people mean, right that. R&R, question. I there's And It decks now. and markets now. a DIY, fixing right dropped think story yes, you're the right different off houses has doing lot.

a box in high. slow So started slowing we've by be the inventories of the expect couple inventories and getting relatively that ago, That are fall, and doing programs we buying. store their better shape and months some business back we seen tremendously, think they'll were

very is can't housing business, New inventories relatively And keep for we are think, low. supplying busy. don't quite enough. They are They have that those up. who

So will but the fall, bad in they in overall, we so. come not folks we which to need think a position, back, R&R the

Operator

question next from Hamir of Your comes CIBC. Patel

Hamir Patel

maybe that non-fiber release the more wage some inflation had labor the inflation Ray, does reflect that that to absorb this pointed to turnover? cost permanent south. the press Is year? that you've cost Or in

Raymond Ferris

would Well, inflation inflation. sorry, of Hamir. the Well, be good say morning, wage a Good actually, is non-wage it that. of part question. I obviously bulk would

wages, we typically when that to on rewarded that actually similar in be will we remains see years. invest However, very previous Turnover side.

is the not really pressure that's are seeing really But transportation from there impact. an through outside and we of listen, supply wages everything it. chain, So cost

Hamir Patel

elements and in how much pointed at press was quantify the so that of have market in downtime much July back half least of backward-looking to you how June. some taken? far Could the And you release

Raymond Ferris

would our number levels, what and Hamir. aspect we've the conditions. Logs market that, on adjust past, And haven't one going a is operated inventory with which weather, say of to are of number is based not put inconsistent factors. We a it, operations it's I we're on in how

status just meet to So business on. I -- run going number think put challenges. to I our wouldn't of kind it's a We're a those no, really honestly, But quo. it's

Hamir Patel

versus component products any deck Just weakness contractors? other side, a slide contractor appears last of think is the you have on if R&R. for what me. DIY the DIY like about for R&R at largely question building strong. R&R, XX% was of the that But work I It is side on what least guys curious seems showed the percent the I portion is and

Raymond Ferris

-- there's job dissected can't I Hamir, there we that. does of out somebody I'm down, good but really pretty haven't sure breaking that a that

spike confident a temporary listen, part mean, in strong. important really over fundamentals pretty we basis, a to the saw head whether slow think other into in looks or shock XXXX. a maybe DIY, growth those continued else everything the that our see But beach, that things, remain is is, driver quarter-to-quarter but the or that, around had I people all we're pullback, R&R that The would growth not, certainly. the I the deck, little that good. sticker single-family But it's we absolutely. indicate from everything on expenses, -- next year X, bit houses.

Operator

comes question next Paul Your Quinn, RBC from Markets. Capital

Paul Quinn

why wondering average, the back-end the back is this at XX% take at in the back front, of just I if if sort year CapEx a looks, back. in it's mean, so But in slightly of take the it's look X-year that? in your this is I But XX% of guide, of weighted. year half, the sort XX% the I Why XX% midpoint kind front. weighted

Chris Virostek

capital completing say just on gangbusters. major a of said, trouble. a I'll and would get pretty pretty myself aware. couple of that, may acquisition going what as And probably, bit I probably we've let's But been completing -- is been really, have Well, had a a quite Ray on you're going so we we -- last focused take probably year, look, here's in

just a lack want only maybe first be the And be an And flow in I don't I'm put, of timing to It's on of business. foot So say of unusual a It's it's what's back-end major just our the is not that's say bit half, even the bit of our because unintended a an flow it's that weighted to focus a capital because would happened. not type that pedal. issue. lumpy. But gas problem. the -- program see intended acquisition, startups two to

Paul Quinn

pine a yellow US? if US increase I'm the Or broadly seeing you distributed southern wondering across referenced thing? just are MD&A log regional that's that your then And costs.

Raymond Ferris

Well, the is answer both.

of been I subside, factors, but time to competition. So weather impacts it's regional see been there issues say, to in has time areas. would And weather, costs cost come I'd mostly whether generally, say the But most log seen inflation the those some just this down have those regional. increased some or our We've across environmental regions. it's as from other of

Operator

next Sean Your of Securities. comes from TD question Steuart

Sean Steuart

A will of like I questions. something company? moderate and as updated a any is thoughts and want start there looks the but we is you're things the targeting? couple are an of on on on perspective. optimal Chris balance markets structure guess, where Virostek capital normalize sense the here liquidity any for to get earnings you cash sense have for ongoing company flow sheet, Do from what guys the are metrics keep the over run, strong focusing general long to you you an

Chris Virostek

of I mirror this rearview coming at looking think maybe get of businesses those the together a things. in bit and volatility as are we're sort we all the

investment-grade indicate, you as think, is rating, rightly, we think, I us. the to important

and our in do capital confidence. dividend enables when early with measure were maintain in it tough like on XXXX program to think I did our XXXX, with early times a continue weather had tough. and in XXXX we to of like we things And us things XXXX to

it able return volatility to at but those X got among manage to got things ambitious shareholders we're capital be what to think at be when able to capital looking occurs, new which We've an well, we start-ups. to got We times. program. I as unpredictable be can we've want So

guidance a can we the and that more the I work what the So rearview in the to don't want going But several I and more a materially next would as any here balanced. over get that we're the bit through things. would cash is that guess company change risk probably I think in remain at kind come quarters in and We're in post-acquisition short to of way. mirror conservative say see and term, on industry, be, put we where to volatile flows

Sean Steuart

community to integrated U.S. further to at question, thoughts Norbord that is then can that the look and your The is And turn as you potential and investment assumptions bias M&A. back

Would of guys niche-focused growth to So wood there. happened that's Europe interest But potentially in cross-laminated There's is be as products, sawmills one significant obviously and more would timber, be that just well. maybe of you bankruptcy something that stuff like engineered potentially? interest?

Chris McIver

I really want well. said and I'll to try think believe, and We very capacity we and say as digestion more seeing company as is Sean, one. into Look, think I going is the we anyway, OSB mean, went I I we've that I field integration, thing the Well, projects think the built I in on that. And take feel opportunities. to and our we're one

So stronger better. just what down fundamentally really in our to DNA. comes company It it's makes the and

anything. hard so it's And no to say to

we're enhances to everything at think shareholders. I going look and anything that we think value for our

think now. wood are we quite mentioned. OSB The our engineered portfolio have strong targets you the think -- primary that the team, I I ones is

to gives areas. and opportunity that the other think think I about learn us growing in

So off us. to take I anything the list. interesting wouldn't It's

the be market. focus and of been -- a primary we've of today growing CLT that would support of the softened Our the lumber supporter board and big

wood do -- we And primary to of grow, the products direction support continue to that guys CLT. I'd engineered CLT time. lumber interest CLT and hopefully, them. products and sure that say over is focus We make the -- today, our we'll of are we other continue other like and explore to things but can that sell to

Operator

comes BMO Mark next Markets. Capital Your from Wilde, question

Mark Wilde

on back just issues. some come capacity to like I'd

you labor facility ramp-up the MD&A how about a the you a would mentioned you do multi-year of long that that's what take? process. ramp-up like new typically And got a thinking Can like? a look just force. likely of is all, help site in curve Dudley And at might us First already that trained where expect in a you've

Raymond Ferris

and a capital experience And we've start-ups. fair major got of amount of

have to the believe But all start-ups to would takes I it people, advantage misses. technology lot have years it's that to to kind up but -- of to does and done an But amount I engineering same. focus. project. this, in I I year a we typically, And really up to of a recent and long-term not king you And it's take think or close get we're employees, be that two start get to loyal there it at been our to of as work with inherent say as a base of the they're to well. but issues getting So think a and better set people better greenfield new We thinking would through tremendous and that retraining two energy, certainly time than we're speed our are capacity, two years. say and always work can it's

Mark Wilde

million to to there are people then the noticed for as the to ago this the could This Carolina, thing the sawmill this? would up probably Because projects week sign $XXX which sawmill much again of a Do sawmill step-up Is big likely foot side, you on announcement particular two to announced here this $XXX a board few last typically, may one be than that the is of in sort of in larger $XXX there years. just scale North And be other million any be a half I've take is any a board have be situation? what feet leg perspective or a on seems over other large. maybe southern that building. or whole is million I something seen that

Raymond Ferris

speculate can that that across America, I mills that. can small profitable and be there's think if mills can I you don't on I profitable. extremely be extremely think North large Look, No, look

around to or I perhaps that location think terrain or timber it's specific opportunity, supplies.

look, I and each size larger great speak small But have average we've got mills unique. that think in situation got itself. so great I that between. for mills is I'd we've let and the have margins, think, And sawmill everything margins

So leave think but my appropriate opinion I do. what decision, it's That's build mill how them. that think with that came location. speculate I you personal the is for can't -- that they their it's be, we you would to

Mark Wilde

deeper as into restart million an starts kind on West the standpoint, capping or how is on showing beyond location? this ability would if mill about slide add get existing second at mean about thinking an were I could thoughts thing last deck would industry do and that? The of you a From new you any kind want further of want the in something lines you new Chambord, to you've in -- think you you the base. $X.X deeper and about about morning, got Fraser debottleneck adding or supply if out I you the were a existing supply of OSB, OSB of just mill capacity sort entirely the

Raymond Ferris

no So to to of hard those, Mark. say either

you if what in done, think, in look December I and value what we've think We We've invest capacity in like think what to So forward we to bring run. continue announced back projects including about invested at -- we OSB. more was that. I and announced, debottlenecking have June

capital I history in and allocation it look think our make we for opportunities better in We is like and then reinvest expand areas. straightforward. to to those those pretty have what

But how table. since of look the will do December, those make of both that on it's we what say not can't better. really be be committed if going have kind to first to And we've what at is you again, we I So insignificant.

Operator

are time. no at further questions There this

turn ahead. will I back over to So Please go Mr. Ferris. the conference

Raymond Ferris

this joining the call morning. thanks, Thank for Look, you, Michelle. everyone,

always, is forward Winslow, our Director safe, Corporate quarter. and respond and & further stay Relations Look, out look Development. in the I available to are to Virostek everyone. As questions, reporting next progress Chris Thanks, Investor on our Robert we to as of

Operator

for thank today. We this Have Ladies ask for that disconnect day. and and gentlemen, great your lines. call please concludes conference participating a you your you

West Fraser Timber (WFG) 31 Jul 212021 Q2 Earnings call transcript