Resolute buys three sawmills in the United States
Resolute Forest Products has entered into an agreement to purchase three Conifex Timber sawmills in the southern United States for approximately US $ 163 million.
C ‘re sawmills located in Florida and Arkansas, producing treated wood construction and wood for the US market.
Conifex, a Vancouver-based company, says the transaction will allow it to fully repay its softwood lumber credit facilities and strengthen its financial condition.
Resolute, headquartered in Montreal, says nearly 25% of its total production capacity will be in the southern United States after the Conifex factories are acquired.
The company plans to spend approximately $ 20 million to modernize the facilities at the El Dorado, Arkansas sawmill, which recently suspended operations, and to gradually resume production in 2021.
Resolute anticipates that most of the employees at the three Conifex plants, including members of management, will remain with the company under similar conditions of employment.
The transaction is expected to close in the first quarter of 2020.