RFP Declares Significant Boost to Wood Products Operations
Rubber and Wood | 2022-02-15 20:49:00
The acquisition of the remaining 50% stake in the I-joist partnership will help RFP to solidify its presence in the growing and attractive engineered wood products segment.
By Paul Ploumis
SEATTLE (Scrap Monster): Resolute Forest Products Inc. (RFP) announced two key acquisitions, which are expected to improve the competitiveness of its wood products operations.
The company has reached an agreement with Louisiana-Pacific Corp. to buy out its 50% stake in two joint ventures that produce I-joists in the Lac-Saint-Jean region of Quebec for a sum of $50 million. The deal is subject to customary closing adjustments. Resolute will enter into agreements with Louisiana-Pacific to continue to serve as the exclusive distributor of the engineered wood products manufactured at Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership.
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The acquisition of the remaining 50% stake in the I-joist partnership will help RFP to solidify its presence in the growing and attractive engineered wood products segment. Furthermore, it will help to lock in the downstream integration of over 60 million board feet of lumber capacity.
In a separate transaction, RFP has signed an agreement on February 11th with Boralex towards purchase of a cogeneration facility in Senneterre, Quebec. The 34.5 megawatt facility is adjacent to RFP’s Senneterre sawmill. The addition will help to maximize the use of biomass at its regional operations.
