Weyerhaeuser to invest $500m in Arkansas TimberStrand facility
Weyerhaeuser Company has unveiled its plan to invest approximately $500 million to build a new, state-of-the-art TimberStrand facility near Monticello and Warren, Arkansas, to expand the company's engineered wood products (EWP) capacity in the U.S. South.
The facility will have an annual production capacity of approximately 10 million cubic feet, which is comparable to the company's existing TimberStrand facility in Kenora, Ontario. Construction is expected to begin in 2025, with the goal of starting operations in 2027.
According to the company, the new facility will support a growing market for TimberStrand in the U.S. South, and the Monticello facility is strategically located to source most of its fiber log requirements from Weyerhaeuser timberlands in the region. Additionally, the plant will include a biomass-fueled cogeneration system, which will fully supply the plant's electrical needs and reduce its environmental footprint.
According the company, key attributes of the new facility:
- Doubles Weyerhaeuser's North American TimberStrand capacity and enhances the company's EWP offerings in the U.S. South.
- Delivers integration with existing Weyerhaeuser timberlands and wood products distribution network, as well as with readily available freight and rail transportation in the region.
- Expected to generate over $100 million of annual adjusted EBITDA at full operating capacity, with additional upside from portfolio integration benefits.
- Serves the company's customer base in the region, along with increasing demand for TimberStrand in housing and industrial applications.
- Expected to add nearly 200 high-quality jobs in Monticello and the surrounding area once fully operational.
- Expands the company's total investment and impact in Arkansas, adding a third manufacturing facility to go along with a lumber mill in Dierks and a plywood and veneer plant in Emerson, as well as 1.2 million acres of timberlands, a seedling nursery and several offices — currently employing more than 700 people across the state.
"This is an exciting opportunity to grow our EWP business, expand TimberStrand into the U.S. South and provide an additional outlet for our fiber logs in Arkansas," said Devin W. Stockfish, president and chief executive officer. "Of the wood products we produce, EWP has the strongest tie to single-family housing construction activity, and this new facility aligns with our conviction that U.S. housing demand will remain favorable over the long term."
The company expects to incur approximately $500 million of capital expenditures for the facility through 2027.
