The deal will allow the company to launch its first mass timber manufacturing facility in the U.S.
For Tokyo-based Sumitomo Forestry Co. Ltd, the purchase of Teal Jones Louisiana Holdings LLC gives it the capabilities to produce dimension lumber and other materials for homes and multi-family buildings in addition to being able to get into the mass timber field.
According to the announcement from the company reporting the deal, the Plain Dealing, LA operation has the capacity to produce 300 million board feet of lumber annually. The plant will also supply products to Sumitomo’s group operations.
Sumitomo said the company also plans to “utilize the approximate 99 acres of unused land on the site to manufacture and sell mass timber and wood products in preparation for future increased demand.” In addition, it said it is considering processing wood chips and lumber residue generated from the manufacturing process into biomass power generation fuel and biorefineries.
With the acquisition, Sumitomo confirmed that it plans to increase its number of plants in the U.S. from 10 to 15 by 2027.
Image: Sumitomo
