Sherbrooke, Quebec— Case goods and upholstery manufacturer Shermag has announced it will close and sell its Lac-Megantic sawmill, eliminating 48 jobs.

Part of a business transformation plan, the closing was one of several previously announced alternatives for Shermag's sawmill operations. The company will consolidate those operations at its sawmill in Notre-Dame-de Montauban, Quebec.

The closing will not affect Shermag's business structure, said company President and CEO Jeff Casselman. Along with manufacturing finished product, the company owns cutting rights for timber, as well as sawmill and veneer facilities.

"Shermag's Notre-Dame-de Montauban sawmill uses the logs associated with our wood cutting rights, and ensures the company will keep control over its key raw material and maintain its unique position as a vertically integrated operation, from the cutting of lumber through the delivery of finished residential furniture products," Casselman said in a statement.