San Group Announces Expansion of San Forest Products and Acorn Sawmill

The San Group announced it is expanding the company’s flag ship value added division, San Forest Products in Port Alberni and the newly acquired Acorn Sawmill in Delta, BC. The $23 million dollar investment will help develop new markets with a focus on high quality shelving products for big box stores such as Ikea. The expansion process expects to break ground in Q4 and extend to 2023.

The San Forest Products value-added expansion will focus on installing an Anthem Line, a fully automized system designed to develop edge glued panels extending to eight feet. Anthem line’s advanced manufacturing process not only helps improve San Group’s product portfolio, but also increases the company’s push to create downstream high value products for global export.

The Acorn Forest Products expansion will focus on installing a new auto grader and dry kilns to modernize the sawmills efficiency. After purchasing the mill from Interfor in Q2 of this year, San Group’s leadership team identified these projects to help enhance the mills output capacity while reducing waste.

Explained John Langstroth, San Group’s Senior Vice President: “We are highly integrated and these advancements allow us to add efficiencies and realize economies of scale. The two projects create further synergistic effects on sales integration, allowing us to expand our product base. Additionally, we will need to focus on hiring more skilled workers to handle the increased capacity. We are excited to break ground!”

About San Group

San Group Inc. is a vertically integrated forest products company, operating in the coastal region of British Columbia. San Group’s operations includes timber harvesting, sawmilling, lumber remanufacturing, value added lumber manufacturing, global distribution sales and consumer retail sales via their San Cedar Direct stores. San Group is proud to manufacture and export 100% Canadian-Made wood products to over 27 Countries. Awarded as 2018 Business in Vancouver, BC Wood Products Exporter of the Year in the Natural Resources Division and Overall, 2019 Ernst & Young, Entrepreneur of the Year, 2020 Business Examiner Manufacturer of the Year and 2022 Business of the Year, Vancouver Island. From Harvest to Home – San Group, a Global leader of Value Added Canadian-Made lumber products.

Contact:

Inder S. Johal – CFO – inder@sangroupinc.com – (604) 881-4848 ext. 116

Source: SanGroup Inc.