Canfor buying lumber mill in Arkansas from Domtar affiliate for US$73 million

VANCOUVER – Canfor Corp. says it has signed a deal with an affiliate of Domtar Corp. to buy its El Dorado lumber manufacturing facility in Arkansas for US$73 million.

The facility in Union County, Ark., produces dimensional lumber and specialty wood products.

Canfor says it expects production capacity at the mill to increase to 175 million board feet per year after planned upgrades.

The deal came as the forestry company reported a loss of C$64.5 million or 54 cents per diluted share for the quarter ended March 31 compared with a loss of C$142.0 million or C$1.17 cents per diluted share a year earlier.

Sales totalled C$1.38 billion for the quarter compared with $1.39 billion in the same quarter last year.

On an adjusted basis, Canfor says it lost 44 cents per diluted share in its latest quarter compared with a loss of C$1.20 per diluted share in the first quarter of 2023.

This report by The Canadian Press was first published May 1, 2024.

Companies in this story: (TSX:CFP)