Forest Products Industry Project Spending Activity Strongest in U.S. Southeastern Region

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Southeast Market Region has become a hotbed of investment activity within the Forest Products Industry. The region is home to some of the largest pulp and paper manufacturing complexes in the U.S., and it is where mill and project owners are making major investments on capacity expansions, modernizations and plant additions. Industrial Info has identified more than 110 active capital and major maintenance spending projects located at sites in Georgia, Mississippi, Alabama, Florida and Tennessee. Current project activity is tied to more than $1.9 billion in expenditures that are under construction or with plans to start construction as far out as March 2014.

Georgia is on the board for more than $645 million in expenditures. A $300 million investment at the Rayonier mill in Jesup is the largest of 36 projects in the state. Project values start as low as $500,000; however, the majority of projects are in the $5 million to $15 million range.

Project activity will be strong over the next 24 months in Alabama, with plans to develop 32 projects. Investments total $320 million and include several boiler and turbine related additions, inspections and rebuilds.

The largest of 12 current projects that add up to $370 million is the plans for a new tissue paper machine and converting equipment, totaling more than $310 million, at a mill in Tennessee. One of the largest mills in the state is developing plans for a new woodyard that could start construction next spring.

In Mississippi, the combined investment value of 20 projects is just more than $470 million and includes companies such as Weyerhaeuser (NYSE:WY) (Federal Way, Washington), International Paper Company (NYSE:IP) (Memphis, Tennessee) and Georgia-Pacific LLC (Atlanta, Georgia).

Florida ranks last in capital investments, with only $167 million in planned activity. A $79 million pulp mill project tops the list of 16 capital and maintenance expenditures.

Total spending for the Forest Products Industry across the U.S., including the Southeast region, is approximately $5.2 billion, spread across 332 active projects.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.