Georgia-Pacific Announces Significant Investments in Plywood And Lumber Operations

News provided by

Mar 22, 2013, 09:02 ET

ATLANTA, March 22, 2013 /PRNewswire/ -- Georgia-Pacific today announced that it is developing plans for potential investments, which total nearly $400 million, in its plywood and lumber operations. These facility expansions and equipment upgrades will further strengthen the company's commitment to meet customers' needs in the building products industry.

(Logo: http://photos.prnewswire.com/prnh/20030425/PAPLOGO )

The company has approved funding for significant engineering and is evaluating facilities in a number of southern states, including North Carolina, South Carolina, Georgia, Alabama, Mississippi, Arkansas and Texas. The effort would increase Georgia-Pacific's overall capacity by approximately 20 percent. Pending final site selection and required permitting, start-up would be expected in the second half of 2014 through the beginning of 2015.

"The markets for our products are currently improving at a steady pace. These proposed investments would position Georgia‑Pacific to provide our current and potential customers with the products they need to grow with a long –term recovery in housing," said Mark Luetters, executive vice president, Georgia-Pacific building products. "We have a long-term vision for our building products business, and these investments underscore our commitment to the industry and the communities where we are located."

Since 2006, the Georgia-Pacific building products business has invested close to $1.5 billion in capital for property and equipment upgrades and acquisitions. This includes the 2007 purchase of several International Paper building products assets and the 2010 Grant Forest Products acquisition. The company also continues to plan for the more than $700 million acquisition of the Temple-Inland Building Products assets.

Headquartered at Atlanta, Georgia-Pacific is one of the world's leading manufacturers and marketers of building products, tissue, packaging, paper, cellulose and related chemicals. The company employs nearly 35,000 people worldwide. For more information, visit www.gp.com.

SOURCE Georgia-Pacific