SEATTLE (Scrap Monster): Resolute Forest Products Inc. announced additional capital investment of $50 million in its wood products operations. The company declared a special cash dividend of $1.00 per common share, which will be payable to share holders on 7th July, 2021.
The proposed capital investment comprises $22 million towards modernization of equipment at the Senneterre, Quebec mill. This is aimed at improving the overall efficiency and productivity of the regional operations. Resolute will invest $13 million at the Thunder Bay / Fort William First Nation (Ontario) sawmill in new equipment to boost capacity by up to 40 million board feet. Also, $15 million will be invested at the Glenwood and Cross City sawmills towards improving overall efficiency and ensuring fiber optimization, said the company press release.
Remi G. Lalonde, president and chief executive officer, Resolute noted that the proposed investments in lumber projects in three key regions will enhance long-term value. The announcement will benefit shareholders, employees and a wide range of community and business partners. These will generate additional value from Resolute’s wood products segments across market cycles, he added.
All the above projects are expected to complete by the end of third quarter next year.