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Rubber and Wood February 01, 2017 11:30:08 AM

Conifex to invest $80 million to upgrade El Dorado sawmill facility

Carolina Curiel
ScrapMonster Author
Ken Shields, CEO of Conifex noted that the company is pleased with the warm welcome and professionalism of the government and private sector partners in El Dorado and the entire state.

Conifex to invest $80 million to upgrade El Dorado sawmill facility

VANCOUVER (Scrap Monster): Vancouver, B.C-based Conifex Timber Inc. has announced that the update and restart of the sawmill complex in El Dorado will create nearly 120 new full-time jobs in the region. The company will invest $80 million to modernize the former Georgia-Pacific sawmill.

In a gathering held at the Conifex Timber Inc. site south of El Dorado on Monday, Gov. Asa Hutchinson thanked the company for making new commitments that would benefit the economic growth of the province. He noted that the decision to reopen the mill is an important event not only for South Arkansas, but also for the entire state. Hutchinson congratulated El Dorado Mayor Frank Hash, Union County Judge Mike Loftin and Mike Dumas, president and CEO of the El Dorado-Union County Chamber of Commerce for their dedicated efforts in bringing the industry to South Arkansas.

Ken Shields, CEO of Conifex noted that the company is pleased with the warm welcome and professionalism of the government and private sector partners in El Dorado and the entire state. The renovation of the saw mill will provide Conifex with easy access to lumber and timber markets in US South. The planned investment is expected to contribute significantly to the company’s growth in future and ensure long-term sustainability of the site. The location of the plant in one of the great timber supply baskets in the US will help the company to gain significant market share, Shields added.

According to Mayor Frank Hash, the plant is expected to bring in multiple positive impacts. It will bring significant economic gains not only to to timber owners, harvesters and processors, but also for other stakeholders including transporters and suppliers.

Canfor Corp., which owns Conifex and its subsidiaries, had announced in September 2015, its decision to purchase the sawmill complex, earlier owned by El Dorado-based Anthony Forest Products for a sum of $93.5 million, which included approximately $15 million of working capital. The purchase deal had included five manufacturing facilities in the US South as well as a 50% joint venture ownership in Anthony Eacom, Inc., which operates a wood I-joist plant in Sault Ste. Marie, Ontario.

Earlier in January this year, Conifex had announced that it has received a new $130 million secured revolving credit facility, being arranged by a major US bank, to be utilized to fund the modernization and restart of its sawmill complex in El Dorado, Arkansas.

Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution. Conifex's lumber products are sold in the United States, Chinese, Canadian and Japanese markets. Conifex has expanded its operations to include bioenergy production following the commencement of commercial operations of its power generation facility at Mackenzie, British Columbia.

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