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Released February 14, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--While U.S. lumber prices have fallen significantly from their peak in 2021 and elevated levels through much of 2022, that could be about to change. Lower production and a growing housing market are leading some to suggest that prices could rise again this year as orders are placed by builders to fill a lack of new housing in the U.S. Industrial Info is tracking several projects at U.S. sawmills, not including those that manufacture fuel pellets for renewable energy purposes. Most of these projects are occurring in the Southeast and Southwest market regions. The project mix includes a range of grassroot projects, expansions and equipment additions as well as maintenance programs.

The three largest grassroot projects are occurring in Louisiana, Mississippi and Alabama and are all currently under construction. In Bienville Parish, Louisiana, Hunt Forest Products Incorporated (Ruston, Louisiana) and Tolko Industries Limited (Vernon, British Columbia) in a 50:50 joint venture began work on their new mill in 2022. The state-of-the-art facility will be able to produce approximately 320,000 board feet per year after it is ramped up to full capacity. Construction is expected to be completed in the coming months.

The two other of the three largest grassroot projects are occurring in Axis, Alabama, near Mobile, where Canadian Forest Products Limited (Vancouver, British Columbia) launched construction of a grassroot mill late last year, and Gloster, Mississippi, where Claw Forestry Services LLC (Jackson, Mississippi) is building a new mill. Both facilities are expected to be completed later this year and will each have a production capacity of approximately 250,000 board feet per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pulp, Paper & Wood Project Database can learn more by viewing the projects reports for the Louisiana, Alabama and Mississippi projects.

Several notable expansions are taking place at existing U.S. sawmills as well. Among the largest of these is PotlatchDeltic Corporation's (NASDAQ:PCH) (Spokane, Washington) expansion of its facility in Waldo, Arkansas. Engineering, procurement and construction (EPC) firm Bid Group (Mirabel, Quebec), which specializes in wood-processing projects, is performing expansions and modernizations to the softwood mill, including the lumber yard and planer mill, that will take the facility's annual production capacity from 190,000 board feet per year to 275,000 board feet per year when completed this summer. Subscribers can click here to learn more about the project.

In Newberry, South Carolina, West Fraser Timber Company Limited (Vancouver) is modernizing and expanding its mill by building a new small log line among other additions to increase production capacity from the existing 124,000 board feet per year. Subscribers can learn more by clicking here.

Other mills are adding equipment, most prominently continuous dry kilns, which dry softwood lumber. Expected to kick off this summer is Weyerhaeuser Company Limited's (NYSE:WY) (Seattle) addition of two continuous dry kilns at its 80 million-board-feet-per-year sawmill and 220 million-board-feet-per-year plywood mill in Dodson, Louisiana. Each kiln will have a capacity of 40 million to 50 million board feet per year and will boost the facility's drying capacity while helping to reduce emissions. The project is expected to be completed next year. Subscribers can click here for more details.

In addition to this future project, Weyerhaeuser is currently adding a continuous dry kiln to its facility in Grifton, North Carolina. The natural gas-fired kiln will be 250 to 300 feet long and is expected to be completed in the near future. Subscribers can click here to learn more.

Other companies are restarting closed mills. The Sustainable Green Team Limited (TSGT) (Astatula, Florida), for example, is in the process of restarting a former Interfor Corporation (Burnaby, British Columbia) mill in Beaver, Washington. The mill was closed by Interfor in 2014, and the site was purchased by TSGT in 2022. Before closing, the mill had a capacity of 100,000 square feet per year. The restart is expected to be finalized toward the end of this year. Subscribers can click here to learn more about the project.

Industrial Info also is tracking more than $20 million worth of maintenance projects planned for U.S. sawmills this year, with the Southwest and West Coast regions tied for first place in regard to both spending and number of projects. Sierra Pacific Industries Incorporated (Redding, California) leads other companies in these projects. Sierra Pacific is planning a maintenance shutdown at its sawmill in Aberdeen, Washington, later this year, and has ongoing maintenance programs spanning this year at two facilities in California. Subscribers can click here for the related project reports.

Subscribers to Industrial Info's GMI Pulp, Paper & Wood Database can click here to view reports for all of the projects discussed in this article and click here to view the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).

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