Eacom to spend $25M at Timmins
USNR has been hired to rebuild Eacom's Timmins mill destroyed by fire.
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. As reported in January of this year, the mill located in Timmins Ontario was destroyed by fire. To date the Company has received $23.7 million of insurance proceeds, $13.7 million related to business interruption and $10 million 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,” said Rick Doman, president and CEO of Eacom. “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.”