PotlatchDeltic Corporation has announced a $131 million investment to expand and upgrade its Waldo sawmill in Columbia County, Arkansas.
The project will raise the mill’s yearly capacity from 190 million to about 275 million board feet of dimensional lumber.
The upgrade will also drastically cut the mill’s operational expenses.
Eric Cremers, President and Chief Executive Officer said: “The Waldo investment is an exciting strategic growth opportunity, and it will position the mill among the lowest-cost producers in the U.S. South.”
“We expect to achieve additional EBITDDA of $25 to $30 million per year and an IRR of approximately 22 percent in our base case, which is based on a relatively conservative lumber price assumption.
“The project reflects our belief that housing fundamentals will remain strong.”
PotlatchDeltic has three sawmills in Arkansas as well as roughly 950,000 acres of forest.
The expansion is projected to result in the creation of 55 new jobs.
Governor Asa Hutchinson added: “The investment in the Waldo lumber mill will further strengthen PotlatchDeltic’s important role in the forest products industry in Arkansas.
“By modernizing and expanding the mill, the company will support the community and position the mill and its team members for success well into the future.”
Waldo’s investment includes improvements to the log yard and planer, as well as a new saw line and a continuous dry kiln.
The present mill will remain operational during the project, which is scheduled to be completed by the end of 2024. PotlatchDeltic has hired BID Group to design, construct, and outfit the expansion and modernization.
What is PotlatchDeltic?
PotlatchDeltic is a leading Real Estate Investment Trust (REIT) that owns and operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business, and a rural timberland sales program
Where it is headquartered? PotlatchDeltic is headquartered in Spokane, Washington.
How many staff does it have? It currently has around 5000 employees.
What is its annual revenue? $1 Billion
Source: Yahoo Finance