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This year's hurricanes are likely to boost Arkansas' timber industry, which was already experiencing a surge of new investment.
That lift to the sector comes in addition to a decades-old scourge of mountain pine beetles, which have decimated timberlands in the Western United States and Canada, pushing Canadian timber companies south in their search for supply.
The investments are large and global: Sun Paper, a Chinese company, is spending more than $1 billion to open a pulp mill near Gum Springs in Clark County, Conifex Timber of Vancouver bought a sawmill in El Dorado in January with plans to restart production, and Interfor Corp. of Vancouver bought and modernized a sawmill in Monticello.
Also contributing to change in the industry this year was the acquisition by Potlatch Corp. of Deltic Timber Corp. of El Dorado, announced late last month. The $1.2 billion all-stock deal, which Deltic calls a merger, will give Deltic shareholders 1.8 Potlatch shares for every Deltic share. PotlatchDeltic, the new company, will be based at Potlatch's headquarters in Spokane, Washington.
The importance of the sector to Arkansas' economy - it employs more than 24,000 people - puts it at the forefront of the state's economic development efforts. Mike Preston, executive director of the Arkansas Economic Development Commission, said Gov. Asa Hutchinson promoted the industry during his recent trip to Asia.
"The timber industry is so strong in Arkansas," Preston said. "It's one of the most targeted industries that we go after. That was actually the first...