2017 International Forest Industries Magazines October November 2017 | Page 18

LUMBER PROCESSING NEWS
CatchMark agrees to $43.3 million acquisition of 14,923 acres
of prime timberlands near southeast Georgia coast
CatchMark Timber Trust, Inc.
(NYSE: CTT) announced this month
an agreement to acquire 14,923
acres of prime timberlands near
the southeast coast of Georgia
for $43.3 million, excluding
closing costs. The to-be-acquired
timberlands in Long and
McIntosh counties, the Coastal
Georgia Acquisition, will expand
CatchMark’s positioning in one of
the most competitive wood baskets
of the U.S. South, increasing its
regional holdings by 36%. Closing
of the Coastal Georgia transaction
is expected by the end of the year.
Jerry Barag, CatchMark’s
President and CEO, said: “This
acquisition will not only provide
synergies in pricing power, haul
distances, and management,
but also will meet CatchMark’s
objectives for continuing to
establish the highest quality
timberland portfolio in the industry.
In particular, we will benefit from
the enhanced merchantability
of our harvests to a significant
number of local mill customers
within a 60-mile radius and a
favorable supply agreement. Most
importantly, the superior stocking
and premier growing conditions
on these plantations also meet
our criteria and targets for
producing durable earnings for our
shareholders.”
The Coastal Georgia Acquisition
includes 72% pine plantations
with stocking of 81 tons per
acre. Approximately 92% of the
inventory volume is pine and 65%
of the inventory volume is chip-n-
saw or sawtimber. The transaction’s
harvest productivity is expected
to be 7.6 tons per acre per year,
adding approximately 110,000 tons
per year to CatchMark’s harvest
over the next decade.
CatchMark also announced
that earlier this month the
company closed on the purchase of
4,641 acres of premier timberlands
located in southeastern South
Carolina (Colleton County)—the
Carolina Midlands V Acquisition—
for $10.9 million, exclusive of
closing costs. Carolina Midlands V
comprises high-quality, heavily-
stocked southern pine timberlands
close to strong coastal mill and
export markets. Based on current
estimates, the Carolina Midlands
V tracts contain approximately
224,000 tons of merchantable
timber, comprised of 94% pine
plantations or convertible natural
pine stands by acreage and 65%
chip-n-saw or sawtimber by tons.
Barag said: “Carolina Midlands
V adds extremely high-quality
sites to our existing South Carolina
timberlands with the acquisition’s
stocking averaging 47 tons per
acre. Again, this transaction
Jerry Barag, CatchMark’s
President and CEO
meets CatchMark’s stringent
criteria for building the highest
quality timberlands portfolio in the
industry.”
The Carolina Midlands V
transaction was funded through
CatchMark’s multi-draw term credit
facility.
Setra invests in a new trim saw and planing
machine in Hasselfors
Wood products company Setra
is investing in a new trim saw
with integrated planing machine
at its mill in Hasselfors. The
investment is expected to deliver
major efficiency gains and help to
strengthen Setra’s position in the
global construction market.
Setra’s Board has decided
to invest in a new trim saw with
integrated planing machine at
Hasselfors sawmill. The new
investment, amounting to SEK
300 million, is expected to deliver
major efficiency gains and forms
an integral part of Setra’s strategy
to increase the proportion of
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North America
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finished products in response to
the growing demand in the global
construction market.
“This investment will allow us
to boost our competitiveness and
sharpen up our offer to customers
in Sweden, the rest of Europe
and, not least, markets outside
Europe. The investment will also
mean greater flexibility and better
service for existing and new
customers alike,” says Olle Berg,
Market Director at Setra.
With the new facility in place,
the mill in Hasselfors is expected
to produce 320,000 m3 of wood
products. Planed products will
make up around two thirds of
overall production.
“This is a major step in our
Hasselfors mill’s continued
development. The new trim saw
and planing machine will enable
us to significantly improve the
efficiency of our current operation.
We’ll be able to expand and
enhance our product portfolio and
better meet our customers’ wishes,
which is something we’re really
looking forward to,” explains Jonas
Fintling, Mill Manager at Setra
Hasselfors.
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16 International Forest Industries | OCTOBER / NOVEMBER 2017
Olle Berg, Market Director
Setra
Jonas Fintling, Mill Manager
Setra Hasselfors
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