The Keadle mill currently operates on one shift. Over the course of the next year, Interfor plans to invest in additional kilns that will increase the mill's operating capacity to more than 160 million board feet. The total investment including the acquisition cost and capital for the additional kilns is approximately $45 million, excluding working capital.
"This acquisition is part of Interfor's strategy to grow our presence in the US Southeast and reinforces our position as one of the world's largest and most diverse lumber companies," said Duncan Davies, Interfor President & CEO. "Keadle's 75 employees have joined Interfor, and will work with us as we continue to build value for our customers, shareholders and other stakeholders."
When combined with the Rayonier mills purchased earlier this year, Interfor will have total annual lumber capacity of over 520 million board feet (on a two-shift basis after giving effect to near term capital projects) in the US Southeast, representing approximately 23%1 of the Company's total capacity.
Interfor is a leading global lumber supplier, with annual capacity of more than 2.2 billion board feet, and one of the most diverse lines of lumber products in the world. The Company has operations across North America and is headquartered in Vancouver, Canada.