Canfor Corporation today announced it will invest approximately $160 million USD to build a new, state-of-the-art sawmill near DeRidder, Louisiana.
The company said it has received significant state and local incentives in support of the project. The facility will have an annual production capacity of 250 million board feet on a two-shift basis and will directly employ about 130 people.
The Louisiana facility will have manufacturing capacity and flexibility to produce a wide variety of highvalue wood products. Startup is expected to commence late in the third quarter of 2022.
The investment in Louisiana is in addition to the approximately $300 million of 2021 capital spending, including about $200 million for the solid wood and pulp operations in Western Canada and $100 million for the solid wood operations in the U.S. South.
“We are excited to grow our operating footprint with the greenfield project in Louisiana, which will increase our production capacity and allow us to meet the growing demands of our customers. We also continue to invest significant capital in our British Columbia and U.S. South facilities to ensure we sustain our top quartile operations and strategically grow our global operating platform,” said Don Kayne, President and CEO, Canfor.
Given the decision to build a new facility in Louisiana, Canfor will not be proceeding with the greenfield project in Washington, Georgia that was previously announced on February 22, 2018.