Rayonier Advanced Materials sells rights to softwood lumber duty refunds to OCP Lumber for $39m
Rayonier Advanced Materials Inc. (RYAM), a global leader in high purity cellulose, has reached an agreement to sell its entitlements to refunds, including all accrued interest, from duties on softwood lumber exported from Canada to the United States during 2017-2021. The sale to OCP Lumber LLC is set at $39 million, with additional potential proceeds depending on the final resolution of the trade dispute. The deal is expected to close within the next 30 days, pending customary conditions.
Strategic Financial Enhancement Through Innovative Asset Sale
“This innovative purchase and sale agreement is another key step for the Company in our ongoing efforts to strengthen our financial position, optimize our asset base and focus on our core business strategy,” stated De Lyle W. Bloomquist, President and CEO of RYAM. He emphasized that by monetizing these softwood duty refunds, RYAM is unlocking value from a non-core passive asset, thereby enhancing its financial foundation.
Rayonier Advanced Materials Inc. finalizes a $39 million deal with OCP Lumber LLC for the sale of softwood lumber duty refund rights.
Background of RYAM’s Softwood Lumber Operations
Prior to this agreement, RYAM owned six softwood lumber mills in Ontario and Quebec, Canada. The company had deposited approximately $111 million in duties to the United States related to lumber exports between 2017 and 2021. Although RYAM sold these lumber assets in 2021, it retained all rights and obligations related to these duties deposits.
RYAM’s Business and Global Operations
RYAM is renowned for its cellulose-based technologies, including high purity cellulose specialties—a natural polymer extensively used in filters, food, pharmaceuticals, and various industrial applications. The company also manufactures products for the paper and packaging markets. Operating globally with facilities in the U.S., Canada, and France, RYAM generated revenues of $1.6 billion in 2023.
This strategic disposition underscores RYAM’s ongoing focus on optimizing its asset portfolio and reinforcing its core business areas, aligning with broader industry trends of refining operational focus and financial agility.