PCH - PotlatchDeltic invests $131M in Waldo Arkansas Sawmill expansion

PotlatchDeltic (NASDAQ:PCH) announced $131M investment to expand and modernize its Waldo sawmill located in Columbia County, Arkansas which will reduce the mill's operating costs significantly. The project will increase the mill's annual capacity from 190M board feet of dimensional lumber to ~275M board feet. "We expect to achieve additional EBITDDA of $25 to $30M per year and an IRR of ~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," president & CEO Eric Cremers commented. The Waldo investment includes 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 and completion is expected by 2024 end.

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PotlatchDeltic invests $131M in Waldo, Arkansas Sawmill expansion