PotlatchDeltic Corporation (Nasdaq: PCH) has successfully completed the planned downtime at its Waldo, Arkansas sawmill, allowing for the tie-in of new equipment as part of a modernization and expansion project. Construction for the modernization has been completed, and the facility is now beginning its ramp-up phase. It is expected to take 6 to 12 months for the mill to reach its new dimensional lumber capacity of 275 million board feet per year.
This modernization and expansion, which represents a $131 million strategic investment, is projected to increase the mill’s annual capacity by 85 million board feet, improve recovery by 6%, and reduce cash processing costs by about 30%. Upon completion of the ramp-up phase, the mill is anticipated to generate approximately $25 million in incremental Adjusted EBITDDA annually, assuming a mid-cycle sales environment. The internal rate of return for this investment is estimated at around 22% under PotlatchDeltic’s base case scenario.
PotlatchDeltic partnered with BID Group for this turnkey project, which includes a new saw line, an upgraded planer, and a new continuous kiln. Additionally, a 170-foot, 45-ton log crane from Fulghum Industries, Inc. was installed and commissioned as part of the modernization efforts.
Ashlee Cribb, Vice President of Wood Products at PotlatchDeltic, expressed gratitude for the dedication and safety focus of the PotlatchDeltic and BID Group teams during the project. Cribb also highlighted the importance of the productive working relationship with BID Group and the significant contributions from suppliers and contractors, which were crucial to the project’s on-time start-up.
About PotlatchDeltic
PotlatchDeltic (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns over 2.1 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi, and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business, and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest practices, is committed to environmental and social responsibility and to responsible governance.
