PotlatchDeltic Announces $131 Million Expansion of Waldo, Arkansas Sawmill

PotlatchDeltic Corporation today announced that it is investing $131 million to expand and modernize its Waldo sawmill located in Columbia County, Arkansas. The project will increase the mill’s annual capacity from 190 million board feet of dimensional lumber to approximately 275 million board feet. The investment will also reduce the mill’s operating costs significantly.

“The Waldo investment is an exciting strategic growth opportunity, and it will position the mill among the lowest cost producers in the U.S. South,” said Eric Cremers, President and Chief Executive Officer. “We expect to achieve additional EBITDDA of $25 to $30 million per year and an IRR of approximately 22% in our base case, which is based on a relatively conservative lumber price assumption. The project reflects our belief that housing fundamentals will remain strong,” stated Mr. Cremers.

PotlatchDeltic owns three sawmills and nearly 950,000 acres of timberlands in Arkansas. The expansion is expected to create 55 new indirect jobs. “The investment in the Waldo lumber mill will further strengthen PotlatchDeltic’s important role in the forest products industry in Arkansas,” Governor Asa Hutchinson said. “By modernizing and expanding the mill, the company will support the community and position the mill and its team members for success well into the future.”

The Waldo investment includes upgrades to the log yard and planer, a new saw line, and a new continuous dry kiln. The existing mill will continue to operate during the project and completion is expected by the end of 2024. PotlatchDeltic has contracted with BID Group to design, build, and equip the expansion and modernization.

About PotlatchDeltic

PotlatchDeltic (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns approximately 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota, and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business, and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest practices, is committed to environmental and social responsibility and to responsible governance. More information can be found at www.potlatchdeltic.com.

Contact:

Jerry Richards – Investor Relations – (509) 835-1521

Source: PotlatchDeltic Corporation