PotlatchDeltic completes Arkansas sawmill construction, begins ramp-up phase

PotlatchDeltic has completed the planned downtime at the Waldo, Arkansas sawmill to tie-in equipment for the modernization and expansion project. The modernization project construction has been completed and the facility is beginning its ramp-up phase, and it is anticipated that it will take 6 to 12 months to reach the mill’s new dimensional lumber capacity of 275M board feet per year. The Waldo modernization and expansion project is a $131M strategic investment that is expected to increase the mill’s annual capacity by 85M board feet, improve recovery by 6%, and reduce cash processing costs by approximately 30%. Once the ramp-up phase is completed, the mill is expected to generate approximately $25M incremental adjusted EBITDDA annually under a mid-cycle sales environment and an internal rate of return of approximately 22% in our base case.