PotlatchDeltic Invests $131 Mln To Expand Waldo Lumber Mill In Arkansas

(RTTNews) - PotlatchDeltic Corp. (PCH), a REIT that owns timberlands, announced Monday that it is investing $131 million to expand and modernize its Waldo sawmill located in Columbia County, Arkansas.

The project will increase the mill's annual capacity from 190 million board feet of dimensional lumber to around 275 million board feet. The investment will also reduce the mill's operating costs significantly.

The Waldo investment includes upgrades to the log yard and planer, a new saw line, and a new continuous dry kiln. The completion of the project is expected by the end of 2024. During the project, the existing mill will continue to operate.

The expansion is expected to create 55 new indirect jobs.

PotlatchDeltic has contracted with BID Group to design, build, and equip the expansion and modernization.

Eric Cremers, President and Chief Executive Officer, said, "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."

PotlatchDeltic owns three sawmills and nearly 950,000 acres of timberlands in Arkansas.