A forklift moves wood at a B.C. mill. (Chuck Stoody/Canadian Press)

Western Forest Products Inc. is going to cut its normal timber production in British Columbia's coastal regions by more than half because of weak markets, the company said Thursday.

"These harvesting curtailments affect about 650 of Western's hourly employees and 1,200 contractor employees," the company said in a statement.

The reduction will affect selected timber operations on Vancouver Island, the Queen Charlotte Islands and the Sunshine Coast for July and August.

The Duke Point sawmill will also be shut down for the summer.

"These actions have been taken in the face of the unusually depressed market for forest products, particularly the home construction lumber industry in the United States and in Japan," Western said.

Western reported a loss for the three months ended March 31 of $17 million (eight cents a share), compared with a profit of $7.2 million (four cents) a year earlier.

Sales were $203.7 million, compared with $276.3 million.

Western is the largest coastal British Columbia woodland operator and lumber producer.