Aug 17, 2012. /Lesprom Network/. EACOM Timber Corporation has determined to commence reconstruction of the Timmins mill in Canada which had been destroyed by fire earlier this year. During the 2Q, the Company initiated capital improvements targeted at increasing the production capacity at two of its mills, Nairn Centre and Elk Lake. Improvements at Nairn Centre are well underway and should be completed in the 3Q 2012, as the company said in the press release received by Lesprom Network. Construction at Elk Lake has just started and completion is scheduled in the early part of the 4Q following a three-week shutdown of the mill. Once completed, these upgrades are expected to partially offset the capacity lost at Timmins and mitigate some of the damages incurred as a result of the fire. A significant portion of these investments will be reimbursed under the business interruption insurance claim. To date, the Company has received $17 million of insurance proceeds, of which $10 million for damage or destruction of assets and $7 million related to business interruption. "The Company intends to continue its focused capital investments with a view to increase capacity and recovery, and reduce manufacturing costs. This should contribute to improve our competitiveness in the global forestry sector, and provide a more stable and sustainable employment environment for our employees in the communities where we operate‟, stated Rick Doman, President and CEO. The business activities of EACOM Timber Corporation consist of the manufacturing, marketing and distribution of lumber, wood chips and wood-based value-added products, and the management of forest resources.