Canfor Corporation announced on May 1st that it will acquire the El Dorado lumber facility in Arkansas from Resolute El Dorado Inc., an affiliate of Domtar Corporation.
The US$73 million deal strengthens Canfor's southern pine operations.
Located near key markets, the El Dorado mill produces dimensional lumber and specialty wood products, complementing Canfor's existing facilities in the region. The acquisition aligns with Canfor's strategy to grow in areas with high-quality timber.
Planned upgrades of $50 million are expected to boost production capacity to 175 million board feet per year.
"The El Dorado mill plays a vital role in the regional forest industry," said Lee Goodloe, President of Canfor Southern Pine. "This acquisition strengthens our commitment to Arkansas. We welcome the talented El Dorado team to Canfor."
Canfor's presence in Arkansas dates back to 1916. The El Dorado acquisition signifies the company's continued investment in the US South.
The transaction with Resolute is expected to close in the coming months, subject to standard closing conditions.
