Prince George, BC: West Fraser Timber's fingerjoint lumber plant in Quesnel, BC is the latest victim of the downturn in the forestry sector.
The small plant, which employs 12 people on one shift, is expected to shut down at the end of May, said company spokesman Bill Tice.
The downtime will continue for an indefinite period.
The plant produces about 15-million board feet of fingerjointed studs annually.
Lumber and panel producers have been reacting to a combination of negative forces: low prices as a result of a collapse in the US housing market, a high Canadian dollar and a 15% export tax on softwood shipments to the US.
Prices for lumber are well below the highs of US$400 in 2004 and 2005.
The benchmark spruce-pine-fir two-by-four was listed at $215, according to Madison's Lumber Reporter.
Other companies that have also cut production recently include Ainsworth and Canfor.
Ainsworth Lumber said it is reducing the work week to four days for 310 employees at its mills in Savona and Lillooet.
Canfor Corp. has announced more sawmill shift reductions as well as a move to four-day work weeks at some of its northern BC mills.
Canfor's Prince George sawmill will be moving to two shifts from three, and Clear Lake's finger-joint lumber plant will be moving to one shift from two, cutbacks that will impact about 100 workers.

© 2008 The Canadian Press