West Fraser Timber heralds $33 million expansion to Newberry sawmill facility

FORT MILL (Scrap Monster): West Fraser Timber Co. Ltd. has announced significant capital investment aimed at expanding the operations at its Newberry County, South Carolina sawmill operations. The $33 million investment is expected to improve the operations at the mill. However, no new jobs will be created as a result of this investment, the company noted. Located in 3287 College St.,Newberry, the sawmill directly employs 155 workers.

According to DJ Russell, Newberry Lumber Mill General Manager, the capital investment will boost the company’s expansion plans which include procurement of additional wood in Newberry County. West Fraser will also install a log merchandiser, which is expected to increase the production at the lumber mill by 37%. This in turn will improve the mill’s competitiveness, thereby helping it to remain as one of the primary employers and key economic contributors in Newberry County. It must be noted that the company has invested millions of dollars over the past several years in modernizing the mill.

Earlier in April this year, the company had announced opening of new state-of-the-art plant at its pulp mill in Central Alberta. The plant had received $3 million innovation grant by Alberta Innovates Bio Solutions (Al Bio). In addition, it had also received funding from the federal government through Natural Resources Canada and Sustainable Development Technology Canada. The mill makes use of a proprietary process to recover lignin, which is repurposed for use in a range of value-added products.

Also, West Fraser had announced plans to resume production at West Pine MDF plant by this fall. The mill had been out of operation since it was hit by devastating fire in March. The latest company press release noted that the construction works of a new system in under progress and is expected to be completed any time.

Meantime, the company had reported earnings of $107 million on sales of $1,155 million during the third quarter of the current year. The sales recorded slight improvement when matched with the total sales of $1,111 reported during Q2 this year. The earnings were also up marginally from $98 million during Q2 2016.

According to company press release, higher dollar lumber prices resulted in improved earnings during the quarter. The lumber operations generated operating earnings of $114 million and adjusted EBITDA of $151 million. Higher plywood prices contributed to better earnings by the panel segment. The segment generated operating earnings of $30 million and adjusted EBITDA of $33 million.

Also, increased pulp production and rise in pulp and newsprint prices led to improved earnings by the company’s pulp and paper division operations. The segment generated operating earnings of $22 million and adjusted EBITDA of $31 million.

Founded in 1955, West Fraser is a diversified North American wood products company that operates 40 mills across Western Canada and the southern United States.  The company’s main products are lumber and southern yellow pine. West Fraser also produces panels, pulp, newsprint and wood chips.