Resolute Forest Products announced capital investments of $50 million in its wood products operations to support its continued growth.
"The cash generated with our lumber platform in these strong lumber markets provides the opportunity to share benefits directly with shareholders," said Remi G. Lalonde, President and Chief Executive Officer of Resolute. "We're also enhancing long-term value by improving our company fundamentals with investments in high-return and quick payback lumber projects in three key regions for Resolute: the Abitibi in Quebec, Northwestern Ontario and the Southeast U.S."
The $50 million in wood products investments include:
$22 million to modernize equipment at the Senneterre (Quebec) sawmill, which will enhance overall efficiency and productivity of the Abitibi regional operations;
$13 million at the Thunder Bay / Fort William First Nation (Ontario) sawmill to increase capacity by up to 40 million board feet with new equipment and modifications to the fiber flow; and
$15 million at the Glenwood (Arkansas) and Cross City (Florida) sawmills to support fiber optimization and overall efficiency. The Cross City investment will also increase capacity by up to 20 million board feet.
According to Resolute, each of these projects will serve to generate additional value from Resolute's wood products segment across market cycles. The improvements at the U.S. sawmills build on the previously announced investments associated with the restart of the El Dorado (Arkansas) sawmill.
The company anticipates completing all the projects by the end of the third quarter of 2022. Accordingly, it is raising its 2021 capital investments guidance from $100 million to $125 million.
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