VANCOUVER, BC, May 1, 2024
/CNW/ - Canfor Corporation (TSX: CFP) is announcing that it has
entered into a purchase agreement with Resolute El Dorado Inc., an
affiliate of Domtar Corporation, to acquire its El Dorado lumber manufacturing facility in
Union County, Arkansas. The
US$73 million acquisition, including
working capital, will create synergies and vertical integration
opportunities given its complementary geographic fit with Canfor's
existing operations in the region.
The facility, which is close to key end-markets, produces
dimensional lumber and specialty wood products. Its integration
will capitalize on the Company's regional manufacturing footprint
to optimize product portfolio and maximize value. Leveraging
Canfor's experience and expertise, and with an anticipated further
$50 million in planned upgrades,
production capacity is expected to increase to 175 million board
feet per year.
"The El Dorado mill is an
important part of the regional forest ecosystem. Together with
Canfor's adjacent El Dorado Laminating Plant and nearby Urbana
Plant, this acquisition aligns with our growth-focused strategy in
areas with access to high-quality globally competitive timber
supply," said Lee Goodloe,
President, Canfor Southern Pine. "The talented team at the mill is
one of the many reasons that we pursued this opportunity, and we
look forward to welcoming them to the Canfor team."
The history of Canfor's operations in Arkansas date back to 1916 through a legacy of
operations which began with the Anthony Forest Products Company,
acquired by Canfor in 2015. "We look forward to continued success
in Union County as we expand on
our local engagement and strengthen our relationships with the
community, and all of the El
Dorado mill's valued partners, customers and suppliers,"
continued Goodloe.
The transaction is expected to close over the next several
months and is subject to customary closing conditions.
Forward Looking
Statements
Certain statements in this press release constitute
"forward-looking statements" which involve known and unknown risks,
uncertainties and other factors that may cause actual results to be
materially different from any future results, performance or
achievements expressed or implied by such statements. Words such as
"expects", "anticipates", "projects", "intends", "plans", "will",
"believes", "seeks", "estimates", "should", "may", "could", and
variations of such words and similar expressions are intended to
identify such forward-looking statements. These statements are
based on management's current expectations and beliefs and actual
events or results may differ materially. There are many factors
that could cause such actual events or results expressed or implied
by such forward-looking statements to differ materially from any
future results expressed or implied by such statements.
Forward-looking statements are based on current expectations and
Canfor assumes no obligation to update such information to reflect
later events or developments, except as required by law.
About Canfor Corporation
Canfor is a global leader in the manufacturing of high-value
low-carbon forest products including dimension and specialty
lumber, engineered wood products, pulp and paper, wood pellets and
green energy. Proudly headquartered in Vancouver, British Columbia, Canfor produces
renewable products from sustainably managed forests, at more than
50 facilities across its diversified operating platform in
Canada, the United States and Europe. The Company has a 70% stake in Vida
AB, Sweden's largest privately
owned sawmill company and also owns a 54.8% interest in Canfor Pulp
Products Inc. Canfor shares are traded on The Toronto Stock
Exchange under the symbol CFP. For more information visit
canfor.com.
SOURCE Canfor Corp