Mill news is mixed for the North American forest products industry as firms continue to complete mill investments and announce mill closings. In the first quarter of 2024, firms advanced sawmill expansions in the U.S. South while others closed sawmills in the U.S. West and North. Companies announced additional future sawmill closings in the U.S. West and U.S. North regions, but other firms announced investments in OSB and mass timber facilities in the Northern U.S. and Canada. Forisk tracks mill activity in the North American Forest Industry Capacity Database.

U.S. South

In the U.S. South, Weyerhaeuser in Holden, LA completed the $157 million sawmill modernization project, adding 100 MMBF of capacity. The project will ramp up over the next 2 to 3 years. Canfor began site work on the new Axis, AL sawmill. International Paper will receive a $130 million in bonds from the Savannah Economic Development Authority to replace equipment at the Savannah and Port Wentworth mills in Chatham County GA. Graphic Packaging will sell the Augusta mill to Clearwater Paper for $700 million; the deal is expected to close Q2 2024. Enviva filed for Chapter 11 bankruptcy, although the company expects to operate normally throughout the process. Enviva plans to continue construction on the pellet mill in Epes, AL but will pause development of the new Bond, MS facility.

Other Regions

Outside the U.S. South, Interfor in Philomath, OR will indefinitely curtail the sawmill by the end of Q1. The hardwood lumber sector took a hit when Allegheny Forest Products closed all facilities in February, a reduction of 170 MMBF of hardwood lumber production.

Despite these closures, other mills opened or planned investment projects. Tahoe Forest Products in Carson City, NV is now open. This is the first sawmill built in decades in the Sierra Nevada Mountains. Godfrey Forest Products announced a new OSB mill in Jay, ME on the site of the old Androscoggin paper mill. The new mill is expected to be 850 MMSF and use one million tons of pulpwood after completion in late 2026. Western Archrib and Kalesnikoff announced mass timber investments in western Canada. Element5 in Ontario will add a new glulam line with an investment from the Hasslacher Group to more than double capacity after completing the project in 2025.

 

Pat Jolley, Product Manager of Forisk’s Mill Capacity Database, contributed to this blog post.

For details on mill capacity and to produce custom reports and maps, check out Forisk’s North American Forest Industry Capacity Database. Discounted rates available for companies that also subscribe to the Forisk Research Quarterly (FRQ). Email hsclark@forisk.com or ndiluzio@forisk.com for pricing information and to place an order.