Canfor to invest in new state-of-the-art sawmill in Louisiana
Canada-headed integrated forest products major Canfor Corporation (Canfor) has announced that it will invest approximately US$160 million to build a new, state-of-the-art sawmill in the US-South, near DeRidder, Louisiana (LA). The company is "pleased" to be receiving "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 plus create significant additional indirect jobs. The Louisiana facility will have the manufacturing capacity and flexibility to produce a wide variety of high-value wood products.
The startup is expected to commence late in the third quarter of 2022.
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 US-South facilities to ensure we sustain our top quartile operations and strategically grow our global operating platform, said Don Kayne, President, and CEO, Canfor.
The investment in Louisiana is in addition to the approximately CA$300 million of 2021 capital spending, including about CA$200 million for the solid wood and pulp operations in Western Canada and CA$100 million for the solid wood operations in the US-South.
Agribusiness remains one of our key industries for growing Louisiana’s economy, and our state offers unique advantages that attracted Canfor here. This major new manufacturing project can resonate across the region’s economy in a variety of ways. We welcome plans for this foreign direct investment in Louisiana by this industry leader, and we look forward to the good jobs this project is expected to create in Beauregard Parish for the region’s skilled workforce, said Governor John Bel Edwards, State of Louisiana.
Given the decision to build a new facility in Louisiana, Canfor will not be proceeding with the greenfield project in Washington, Georgia (GA) that was previously announced in February 2018.