Sumitomo Forestry is doubling down on its North American expansion, with its decision to acquire a major Louisiana sawmill – in an area close to where 40% of its housebuilding frames are constructed – to shield its U.S. housing operations from the renewed volatility of Trump-era tariffs. The move is part of a broader strategy to reduce reliance on Canadian lumber, which is now subject to 35% duties and tariffs and still supplies nearly 30% of the U.S. homebuilding market.
“Having a base that uses domestic lumber helps diversify risks,” said Etsuya Yasui, CEO of Sumitomo Forestry America, in an interview with Nikkei Asia today. Finalised on July 1, the acquisition of Teal Jones–Plain Dealing (TJPD) gives Sumitomo control of a high-capacity mill near the Texas border, producing 300 million board feet of lumber annually. The facility processes around 1 million cubic meters of logs each year—enough to build approximately 14,000 standard U.S. homes. Located on a 100-hectare site, TJPD is now a cornerstone of Sumitomo’s U.S. housing strategy. The company plans to develop 40 hectares of unused land into a mass timber manufacturing hub, supporting its sustainability goals and long-term growth vision.
“We are seeking to maximise the value of wood through the cascading utilisation of wood,” the company said in a statement, outlining plans to convert wood residue into biomass fuel and biorefinery inputs. The acquisition also strengthens Sumitomo’s Fully Integrated Turn-key Provider (FITP) operations, which design and manufacture housing components such as panels and trusses. With strong demand in Texas—particularly in the Dallas region—the company plans to expand its U.S. footprint from 10 to 15 facilities by 2027.
This pivot comes as the Trump administration’s 2025 tariff package—part of its “Liberation Day” trade policy—introduced sweeping levies on Canadian, Mexican, and Chinese imports. For the construction sector, the impact is immediate: rising costs, disrupted supply chains, and increased pressure to source locally.
Sumitomo’s investment in TJPD positions the company to weather these disruptions while capitalising on the growing U.S. demand for mass timber. According to the International Mass Timber Conference, states like California, Texas, Washington, and New York each have more than 50 mass timber projects in design or construction, with multifamily, educational, and commercial buildings leading the way.
- The acquisition also aligns with Sumitomo Forestry’s “Mission TREEING 2030″ vision, which emphasises sustainable growth, cascading wood utilisation, and innovation in timber construction. For more on Sumitomo Forestry’s long-term strategy, see Wood Central’s special feature on Mission TREEING 2030. To explore the rise of mass timber across the U.S., visit Wood Central’s April 2025 feature.
