West Fraser Timber Co. (NYSE: WFG) has acquired Georgia Pacific‘s oriented strand board (“OSB”) mill in South Carolina for $280 million. The facility, which initially began producing OSB in 2007, has been idle since 2019.

West Fraser, a diversified wood products company, plans to invest an additional $70 million in capital to upgrade and optimize the facility in preparation to restart production. Once completed, the location will enhance West Fraser’s portfolio with a low cost location in the south.

“We look forward to acquiring and upgrading the Allendale mill to make it another component of West Fraser’s low-cost production portfolio,” said Ray Ferris, West Fraser president. “Further, the additional production capability will provide greater operational flexibility across our OSB mill portfolio to meet demand growth for our engineered wood products, including for our specialty and value-added products,”