Slow and steady is the theme of this year’s housing market. While it would be great if we all had a crystal ball, our view at Georgia-Pacific focuses on long-term business planning.
One example of this is our recently announced $9 million investment in our Dudley, N.C., lumber operations. The investment is part of a multi-phase increase in lumber production capacity and supporting infrastructure at the mill.
Most of the investment will be used to construct a new continuous dry kiln that will double the kiln capacity at the mill and create approximately 20 new jobs. Construction is scheduled to finish by the second quarter of 2014. We’re also considering additional capital investments for the mill, which if made could total up to $90 million.
The Dudley investment is part of a larger plan we announced in March, which involves evaluating investments in our other building products facilities in states including Alabama, Arkansas, Georgia, South Carolina and Texas. The investment under consideration would increase Georgia-Pacific’s overall production capacity by approximately 20 percent.
Since 2006, we’ve spent $2.2 billion in capital in our building products business for property and equipment upgrades and acquisitions, the bulk of which was spent during the heart of the recession. So, no matter how cloudy the crystal ball, our ability to grow with our customers’ needs will always be in sharp focus.