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Rubber and Wood September 30, 2016 11:30:50 AM

Weyerhaeuser announces major upgrade to Millport softwood lumber mill

Paul Ploumis
ScrapMonster Author
Weyerhaeuser has announced its decision to make significant investments over the next several years towards upgrading of its sawmill located in Millport, Alabama.

Weyerhaeuser announces major upgrade to Millport softwood lumber mill

MILLPORT (Scrap Monster): Weyerhaeuser has announced its decision to make significant investments over the next several years towards upgrading of its sawmill located in Millport, Alabama. The investment is part of the company’s existing plan for capital investment aimed at cutting the cost and improving its long-term viability.

Steve Higdon, unit manager at Weyerhaeuser’s Millport lumber mill congratulated the entire Millport team for the high levels of safety and success achieved over the past several years. The new investments will offer better benefits to not only to the neighboring community but also to the entire region. The works will create more jobs in the region and add diversified products to its portfolio. Higdon also thanked representatives from Governor’s office, Northwest Alabama Economic Development Alliance and Alabama Department of Commerce, AIDT for working with the project. He also appreciated the efforts carried out by Senator Gerald Allen, Representative Kyle South, and other state and local officials.

Meantime, Senator Gerald Allen noted that Weyerhaeuser’s investment reiterates their commitment to Alabama and its communities. It further signals that Alabama offers excellent opportunities for new businesses and existing businesses to flourish. He applauded the company for supporting the economic development in the region.

The upgrades will increase the mill’s capability by enabling it to produce boards up to 2” x 12” x 20’ lengths. The facility has so far been producing 2” x 4” x 8” studs which are extensively used by housing and commercial construction industry.

Weyerhauser has recently announced several measures to restructure their operations. Earlier during the month, the company had shut down its lumber and plywood mills in Columbia Falls, Montana, after operating for nearly seventy years. The company had cited short supply of logs as the key reason for the closure of the mills. Despite sincere efforts by Montana political leadership, the log supplies had failed to witness significant improvement. Considering the long-term log supply situation, the company had conducted a review of its operations and consequently arrived at the conclusion that it would be ideal for it to consolidate to the Kalispell facilities.

In accordance with the strategic review process on its Cellulose Fibers business, the company had sold its liquid packaging board business to Nippon Paper Industries Co., Ltd for $285 million in cash. The sale was completed during the first week of September this year.

In May 2016, Weyerhaeuser had also announced plans to sell its pulp mills to International Paper Co. According to sources, the US Department of Justice has already concluded the regulatory review on the proposed transaction. The deal is expected to be completed during last quarter of this year. The deal covers five pulps mills located in Columbus, Miss., Flint River, Ga., New Bern, N.C., Port Wentworth, Ga., and Grande Prairie.

Weyerhaeuser is one of the world's largest private owners of timberlands. It owns or controls more than 6 million acres of timberlands, primarily in the U.S., and manages another 14 million acres under long-term licenses in Canada.

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