Canfor green lights $120 million sawmill in Georgia

The Board of Directors of Canfor Corporation, the Vancouver, British Columbia-based softwood lumber producer, has approved the construction of a new, state-of-the-art sawmill in Washington, Ga.

The new sawmill, which will cost approximately $120 million, have a production capacity of 275 million board feet and employ best-in-class mill technology, the company said.

Canfor also said that the mill will be strategically located near the company’s existing glulam facility in Washington while larger population centers in Athens and Augusta will allow the new mill to draw on a strong and skilled employee base.

Construction will commence in the second quarter of 2018, with the official start-up projected for the third quarter of 2019. At full run rates, assuming 2017 market pricing, the sawmill is forecast to generate annual EBITDA of approximately $35 million, according to Canfor.

“This new mill supports our growth strategy and will provide strong economic returns over the cycle,” said Canfor President and CEO Don Kayne. “We are pleased to expand our presence in the community of Washington and look forward to providing additional high value products to our global customers”.

Canfor maintains interests in British Columbia and Alberta, Canada along with facilities in North Carolina, South Carolina, Alabama, Georgia, Mississippi, and Arkansas. Canfor also owns a 54.8% interest in Canfor Pulp Products Inc.