On May 1, Canadian timber group Canfor announced that it has entered into a purchase agreement with Resolute El Dorado, an affiliate of Domtar Corporation, to acquire the El Dorado sawmill which is located in Union County, Arkansas. According to the group, the US-$73 million acquisition (including working capital) will create synergies and opportunities for vertical integration given the favorable locations of the sawmill which fits in well with Canfor’s existing operations in the region.
By using Canfor’s experience and expertise and by investing an anticipated further $50 million in planned upgrades, the group wants to increase the sawmill’s production capacity to 175 million bft a year (around 280,000 m³/yr of 2-by-4 equivalents).
Just a few weeks ago, timber-online.net reported on Canfor’s expansion plans in Alabama.
