PotlatchDeltic Corporation Announces $131 Million Investment in Waldo, Arkansas, Sawmill

PotlatchDeltic Corporation, which owns three sawmills and nearly 950,000 acres of timberlands in Arkansas, announced today (6-6-22) that is investing $131 million to expand and modernize its Waldo, Columbia County, Arkansas sawmill.

With the updates scheduled to be completed in Q4 of 2024, the mills annual capacity will increase from 190 million board feet of dimensional lumber to approximately 275 million board feet. The mill updates will also greatly reduce the mill’s current operating costs.

The Waldo mill investment upgrades include upgrades to the log yard and planer, a new saw line, and a new continuous dry kiln. The existing mill will continue to operate during the project. PotlatchDeltic has contracted with BID Group to design, build, and equip the expansion and modernization.

In remarks prepared for the announcement, Eric Cremers, President and Chief Executive Officer of PotlatchDeltic, said:

“The Waldo investment is an exciting strategic growth opportunity, and it will position the mill among the lowest cost producers in the U.S. South. We expect to achieve additional EBITDDA of $25 to $30 million per year and an IRR of approximately 22% in our base case, which is based on a relatively conservative lumber price assumption. The project reflects our belief that housing fundamentals will remain strong.”