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Resolute wants to take over three sawmills from Conifex

27.01.2020 − 

Resolute Forest Products (RFP) wants to take over three US sawmills of Conifex Timber for a total of 163m CAD plus approximately 7m CAD in operating capital. A corresponding agreement was published by the two companies on 24 December. CIBC Capital Markets and Raymond James are acting as Conifex’ financial advisors in the transaction, and Sangra Moller as legal advisor.

The three sawmills in Cross City, Florida, as well as in Glenwood and El Dorado in Arkansas have a combined annual capacity of roughly 550m bdft of southern yellow pine sawnwood. Resolute has announced that it will be gradually resuming operation at the El Dorado works in 2021, having been shut down indefinitely by Conifex in August 2019, once the necessary investment measures have been completed along with an increase in the combined operating capital of around 20m CAD.

By selling the three works, Conifex, which is struggling with financial problems, is pulling even further out of sawn softwood production. It was only at the end of November that the group had completed the sale of the Fort St. James sawmill including the associated licences to the US company Hampton Lumber Inc. of Portland, Oregon. Following the sale of the three works, Conifex will continue to operate only one sawmill in Mackenzie, British Columbia.

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