GreenFirst Announces Strategic Investment Plan to Boost Lumber Production

GreenFirst Forest Products Inc. has revealed an update to its capital expenditure strategy, aimed at accelerating growth in the lumber market. After acquiring sawmills from Rayonier Advanced Materials and implementing upgrades, the company is targeting further expansion.

GreenFirst plans to invest about $50 million during the current lull in lumber pricing. This investment aims to increase production by up to 20% and reduce costs by 10%, with an estimated payback period of 2.8 years. The initiatives are part of a broader plan to establish GreenFirst as a leading lumber producer in North America.

The company has identified additional opportunities for increased production capacity and cost reduction, amounting to $70 million in potential future investments, pending board approval. GreenFirst's strategy is supported by the recent Rights Offering and the spin-out of Kap Paper.