Interfor Corporation Reports on Strategic Capital Investments Projects

In reporting on their Q1 2021 results, Interfor Corporation announced capacity-expanding spending projects. Interfor stated that the company has received Board approval to proceed with strategic capital investments at its sawmills in Castlegar, BC and Perry, Georgia of approximately $35 million and US$30 million, respectively. These investments will provide a combination of benefits in the form of higher production, improved lumber recovery and grade mix, and lower conversion costs. Completion of both projects is expected in Q3 of 2022. Interfor reported that the new kiln installed at their Adams Lake sawmill was fully operational by mid-February and allows for increased site-wide production and a significantly improved grade mix. This project was complementary to Interfor’s Q1’20 acquisition of 349,000 cubic meters of annual cutting rights from Canfor Corporation which solidified Adams Lake’s long-term log supply and operational platform. Interfor also provided an update on the ongoing rebuilding of the Eatonton, Georgia sawmill. Eatonton is on-track for completion in Q4 of 2021, with full ramp-up expected to take approximately nine months thereafter. This project will add approximately 110 million board feet of annual production capacity and result in lower cash conversion costs and improved grade mix.