One of the world’s largest lumber producers, Weyerhaeuser, has broken ground on a $500 million plant near Monticello, Arkansas, the first in the US to produce TimberStrand – a mass timber product used in headers, beams, and framing.
Wood Central understands the new facility, slated to open in 2027, will have an annual capacity of 10 million cubic feet, comparable in size to its TimberStrand facility in Ontario:
“We’ve had tremendous support, not only from local leaders and businesspeople but also from regional and state elected officials and members of the community,” said Brian Chaney, senior vice president of wood products at Weyerhaeuser. “This is the first new facility Weyerhaeuser has built in many years, and the fact that we’re doing it here in southeast Arkansas is a testament to the support this region has shown for the project, the leadership of the people involved and the optimism we have in the forest products industry in this state.”
TimberStrand is a wood product mostly made from Southern yellow pine grown in Weyerhaeuser’s regional timberlands. It is engineered for straightness and strength, not twisting or flexing like dimensional lumber. As reported in local media, Weyerhaeuser expects to generate more than $100 million in annual adjusted earnings before interest, taxes, depreciation, and amortisation at full operating capacity. Once fully operational, it will add 200 jobs (to 719 already employed in Arkansas).
“One of the great things about building this type of facility in south Arkansas is that the people here have a long history of supporting the forest products industry,” Chaney said. “While we’re still a ways off from hiring most jobs, we’re confident the local workforce has the right mix of skills and experience to build a strong team. That’s one of the big reasons we chose this site, and of course we will also provide comprehensive training to make sure everyone is prepared to run our operations safely and effectively, regardless of previous experience.”
Chaney said 20 potential sites for the facility were studied, but leaders returned to Monticello, valuing its proximity to the University of Arkansas at Monticello, home to the state’s only forestry school. In addition, Chaney said the new mill is located near the company’s Southern timberlands, which include 1.2 million acres of land owned or managed in Arkansas and plenty of wood fibre. “The site itself was attractive because it’s relatively flat for construction and has readily available freight and rail transportation,” Chaney said.
Weyerhaeuser also expects additional upside from portfolio integration benefits, or, as Chaney described, the anticipated benefits to derive from the facility’s location and market impact. The company gains “all sorts of efficiencies,” Chaney added, when manufacturing and timberland operations are in the same place and working closely with each other. “The facility will also establish a strong, steady demand for our pulp logs in the region, which should improve the area’s broader pulp log market,” he said, explaining that about 80% of the wood fibre processed in the new facility will come from Weyerhaeuser-owned timberlands.
Weyerhaeuser has Sheridan, Crossett, Hot Springs, and De Queen offices. It also manages a plywood and veneer facility in Emerson, a softwood lumber mill in Dierks, and a nursery in Magnolia. Soon, a Monticello mill will be added to the portfolio as the mass timber market matures. One reason is that TimberStrand, usually made from hardwood species, can be made from softwood. Chaney considers it a significant technical breakthrough that potentially further expands the market for the product in the years ahead.
“TimberStrand is one of the most innovative and versatile engineered wood products in the world,” Chaney said. “And while mass timber applications are certainly important, they’re only a small part of the overall product story.”
