ATLANTA - With lumber and plywood demand up for housing construction remodeling, Georgia-Pacific will announce a $400 million mill expansion.
Georgia-Pacific will grow lumber and plywood capacity 20 percent as demand spikes and prices rise. Consolidation has reduced plywood capacity across the industry, contributing to price rises.
"The markets for our products are currently improving at a steady pace. These proposed investments would position GeorgiaâPacific to provide our current and potential customers with the products they need to grow with a long–term recovery in housing," said Mark Luetters , executive VP for Georgia-Pacific building products. "We have a long-term vision for our building products business, and these investments underscore our commitment to the industry and the communities where we are located."
Georgia-Pacific will add capacity through the next three years, with plant expansions and upgrades likely in North Carolina, South Carolina, Georgia, Alabama, Mississippi, Arkansas and Texas.
Georgia-Pacific says it has inveted $1.5 billion in its building products business since 2006, for capital improvements and acquisitions. Half that figure was represented by a December 2012 deal, when Georgia-Pacific agreed to acquire Temple-Inland Building Products business from International Paper Co. for $750 million. Set to close this quarter, it brought into G-P's fold Temple-Inland's 16 building products production plants across eight states, including lumber, fiberboard, medium density fiberboard (MDF) and particleboard mills.
Georgia-Pacific is not the only mill increasing capacity. In related news, Plum Creek announced earlier this month it would reopen its sawmill in Evergreen, MT, four years after closing it indefinitely. In a statement by the company, Plum Creek attributed an improving housing market for projected demand increases of its lumber, plywood, OSB and MDF products in 2013.
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