Weyerhaeuser Expanding Engineered Wood Products Portfolio

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Announces strategic investment to build new TimberStrand® facility in Arkansas

SEATTLE, Nov. 18, 2024 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced its plan to invest approximately $500 million to build a new, state-of-the-art TimberStrand® facility near Monticello and Warren, Arkansas, expanding the company's engineered wood products (EWP) capacity in the U.S. South. The facility will have an annual production capacity of approximately 10 million cubic feet, which is comparable to the company's existing TimberStrand® facility in Kenora, Ontario. Construction is expected to begin in 2025, with the goal of starting operations in 2027.

Weyerhaeuser Company logo. (PRNewsFoto/Weyerhaeuser Company)
Weyerhaeuser Company logo. (PRNewsFoto/Weyerhaeuser Company)

The new facility will support an underserved and growing market for TimberStrand® in the U.S. South and showcase Weyerhaeuser's innovation in Wood Products. Leveraging its proprietary TimberStrand® technology, the company is combining institutional expertise from Kenora with extensive research and development to manufacture TimberStrand® with southern yellow pine as the primary feedstock. Given the company's sizeable timber holdings in Arkansas, the Monticello facility is strategically located to source most of its fiber log requirements from Weyerhaeuser timberlands in the region. Additionally, the plant will include a biomass-fueled cogeneration system, which will fully supply the plant's electrical needs and significantly reduce its environmental footprint.

Key attributes of the new facility:

  • Doubles Weyerhaeuser's North American TimberStrand® capacity and enhances the company's EWP offerings in the U.S. South

  • Delivers seamless integration with existing Weyerhaeuser timberlands and wood products distribution network, as well as with readily available freight and rail transportation in the region

  • Expected to generate over $100 million of annual Adjusted EBITDA at full operating capacity, with additional upside from portfolio integration benefits

  • Serves the company's strong and expanding customer base in the region, along with increasing demand for TimberStrand® in housing and industrial applications

  • Enhances the company's product offering to the mass timber market as it continues to grow and mature

  • Aligns with the company's long-term sustainability and greenhouse gas emissions reduction goals

  • Expected to add nearly 200 high-quality jobs in Monticello and the surrounding area once fully operational

  • Expands the company's total investment and impact in Arkansas, adding a third manufacturing facility to go along with a lumber mill in Dierks and a plywood and veneer plant in Emerson, as well as 1.2 million acres of timberlands, a seedling nursery and several offices — currently employing more than 700 people across the state

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