SEATTLE--(BUSINESS WIRE)--Plum Creek Timber Company, Inc., (NYSE:PCL) today announced it has finalized a long-term fiber supply agreement with Drax, a leading power company in the United Kingdom that is transforming itself into a predominantly biomass-fueled power generator.
“Plum Creek is proud to partner with Drax to work toward practical solutions that help develop sustainable energy, provide an attractive return for our investors, and create jobs in our communities.”
Plum Creek will deliver up to 770,000 tons annually of sustainably-managed wood fiber to two U.S. pellet manufacturing locations during the course of the 10-year contract. Drax plans to construct two pellet mills, one each in Mississippi and Louisiana, to convert wood fiber into pellets for export to its power station in the United Kingdom. Deliveries are scheduled to begin in 2014.
“This agreement further diversifies our customer base and represents a new and expanding market for our sustainably grown wood fiber,” said Rick Holley, President and CEO. “Plum Creek is proud to partner with Drax to work toward practical solutions that help develop sustainable energy, provide an attractive return for our investors, and create jobs in our communities.”
Plum Creek is one of the largest landowners in the nation and the most geographically diverse, with approximately 6.4 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest. For more information on Plum Creek, visit www.plumcreek.com.
This press release contains forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as "will" or "plans." The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the cyclical nature of the forest products industry, our ability to harvest and deliver our timber, general economic conditions and various regulatory constraints. These and other risks, uncertainties and assumptions pertaining to our business are detailed from time to time in our filings with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, and the Securities Act of 1933, as amended. The accuracy of forward-looking statements is also subject to our business partners’ operational risks, the demand for their products and services, regulatory constraints and their access to capital. It is likely that if one or more of the risks materializes, or if one or more assumptions prove to be incorrect, the current expectations of Plum Creek and its management will not be realized. Forward-looking statements are not guarantees of performance, and speak only as of the date made, and neither Plum Creek nor its management undertakes any obligation to update or revise any forward-looking statements.