EACOM Timber rebuilding Timmins mill; Capital project complete in Elk Lake
EACOM Timber Corporation is pleased to announce that the Board has approved entering into an agreement with USNRKockums Cancar Inc., to rebuild the Timmins Mill that was destroyed by fire in January, 2012.
The total cost of the project is estimated at $25 million, a substantial portion of which is being funded from proceeds of insurance related to a fire.
To date EACOM Timber has received $23,700,000 of insurance proceeds, $13,700,000 related to business interruption, and $10,000,000 for damage or destruction of assets.
EACOM has also completed its capital project on the sawline at the Elk Lake facility. The mill has been restarted and expected to operate at full production in January 2013.
“We are continuing our capital expenditure program designed to increase productivity and capacity at our mills to reduce manufacturing costs. The rebuild of Timmins has also been designed to provide for improved productivity. Lumber markets have improved and continue to contribute to the overall performance of the Company” commented Rick Doman, President and CEO of EACOM Timber.
Source: EACOM Timber
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