VANCOUVER, B.C. — Canadian lumber giant Canfor Corp. has announced plans to build a $120 million (USD), state-of-the-art sawmill in Washington, Georgia. The new softwood lumber mill will have a production capacity of 275 million board feet and produce high-value dimension and specialty lumber products.

Originally scheduled to begin in late 2018, Canfor said the construction of the greenfield mill could be delayed due to a potential previous commitment by the contractor. "The company is working to rectify the situation but may encounter delays relative to the construction schedule," the Feb. 22 statement said.

Startup is scheduled for third quarter of 2019, based on the original construction date. At full run rates, assuming 2017 market pricing, the sawmill is forecast to generate annual EBITDA of approximately $35 million (USD), the company said.

“This new mill supports our growth strategy and will provide strong economic returns over the cycle,” said Canfor‘s President and CEO, Don Kayne. “We are pleased to expand our presence in the community of Washington and look forward to providing additional high value products to our global customers”.

The new sawmill will be located near Canfor’s glulam facility in the city of Washington, and a few hours away from its facility in Moultrie, Georgia, which has a planned expansion of $28 million, the company announced in November.

Based in Vancouver, British Columbia, Canfor (TSX:CFP) is a leading integrated forest products company with interests in British Columbia, Alberta, North and South Carolina, Alabama, Georgia, Mississippi and Arkansas. The lumber producer hit record sales of $4.66 billion (CAD) and an adjusted net income of $363.4 million last year, up 362.4% compared to 2016's $136.8 million.

Canfor produces primarily softwood lumber and also owns a 54.8% interest in Canfor Pulp Products Inc., which is one of the largest global producers of market northern bleached softwood kraft pulp and a leading producer of high performance kraft paper.