Boise Cascade to sell NC plywood mill to Southern Veneer Products26 February 2019
Boise Cascade Company has entered into an agreement with an affiliate of Southern Veneer Products (Southern Veneer) to sell its plywood operations in Moncure, North Carolina.
“Moncure primarily supplies hardwood plywood to the furniture panel sector,” said Mike Brown, executive vice president at Boise Cascade’s Wood Products division.
“The acquisition of this facility more closely aligns with Southern Veneer’s business strategy. We believe this sale provides the best long-term option for continuing to serve the furniture market and sustain employment at the mill into the future.”
Mr Brown said Southern Veneer had been a trusted veneer supplier for Boise Cascade for more than 10 years. Approximately 150 employees are employed at the Moncure facility.
“We are excited to enter into this agreement with Boise Cascade as the addition of the Moncure facility is a continuation of our plan to expand our geographic presence and build a diversified portfolio of world class assets,” said Ken Adams, president of Southern Veneer.
“We intend to invest in equipment upgrades to make full use of the production capacity at the plant. We look forward to welcoming the employees onto our team and working with the plant’s suppliers and customers.”
“As we conclude optimisation of our veneer sourcing strategy and with the capital investments we’ve committed to our Chester, Florien and Oakdale facilities, we believe there is ample veneer capacity internally and externally to meet the future needs of our EWP customers,” said Mr Brown.
Due diligence is expected to be complete during the first quarter.