May 28, 2021
Interfor to raise U.S. production to 77 per cent by buying four sawmills for US$375M
The Canadian Press
Risk of double U.S. tariffs on Canadian lumber is about protectionism: BC Lumber Trade Council
CALGARY - Interfor Corp. is forging ahead with a strategy fuelled by record high prices to grow its lumber production in the United States as the U.S. moves to increase softwood lumber duties on Canadian imports to protect its domestic producers.
The Burnaby, B.C.- headquartered company says it will buy four sawmills for US$375 million, including working capital, in Mississippi, Alabama, Louisiana and Oregon from Georgia-Pacific Wood Products LLC and GP Wood Products LLC.
In March, it closed a deal to buy a sawmill in South Carolina from WestRock Co. for US$59 million.
The acquisitions have been paid for with cash on hand.
The Georgia-Pacific deal is expected to boost Interfor's annual lumber production capacity by 720 million board feet to 3.9 billion board feet, of which 77 per cent will be based in the U.S. and not subject to softwood lumber duties.
Last week, the U.S. Commerce Department recommended higher duties which, if finalized later this year, would more than double the “all others” countervailing and anti-dumping rate to 18.32 per cent from 8.99 per cent.