VANCOUVER, British Columbia -- Canfor Corp. entered into a purchase agreement with Resolute El Dorado Inc., an affiliate of Domtar Corp., to acquire its El Dorado lumber manufacturing facility in Union County, Ark.

Canfor said the $73 million acquisition, including working capital, will create synergies and vertical integration opportunities because of its complementary geographic fit with Canfor’s existing operations in the region. The facility produces dimensional lumber and specialty wood products.

Canfor also announced that it plans to invest $50 million in planned upgrades that will boost production capacity to 175 million board feet per year.

“The El Dorado mill is an important part of the regional forest ecosystem,” said Lee Goodloe, president of Canfor Southern Pine. “Together with Canfor’s adjacent El Dorado laminating plant and nearby Urbana Plant, this acquisition aligns with our growth-focused strategy in areas with access to high-quality globally competitive timber supply.”

Resolute reopened the El Dorado facility in 2021. It was one of three facilities that Resolute purchased from Conifex Timber in February 2020. Conifex indefinitely shut down the mill Aug. 28, 2019, due to slumping lumber prices.

Less than a week after announcing the acquisition of the El Dorado operation, Canfor said it would permanently close its Polar sawmill in Bear Lake, British Columbia, and suspend its planned $200 million reinvestment in its Houston, British Columbia, mill.