Sumitomo Forestry Co. finalized its ¥4.3 billion ($29 million) acquisition of Teal Jones Louisiana Holdings on July 1, securing control of a sawmill operation as the Trump administration threatens new tariffs on lumber imports.
The Japanese homebuilder now owns the Plain Dealing facility in Louisiana, which produces 300 million board feet annually — enough lumber for approximately 14,000 homes. The transaction represents Sumitomo’s first timber manufacturing complex in the United States, part of a broader vertical integration strategy.
The timing aligns with heightened trade tensions. President Donald Trump has launched national security investigations into lumber imports and threatened widespread tariffs on foreign goods. Trump directed the Commerce Department to investigate timber and lumber imports in March, with findings due November 26, while threatening to impose across-the-board tariffs on lumber.
Sumitomo paid substantially less than initially planned. The company originally expected to pay $42 million before court-approved adjustments in Canada and the U.S. reduced the final price. The acquisition emerged from Teal Jones Group’s bankruptcy proceedings after the Canadian company filed for creditor protection in April 2024.
The facility will supply lumber to Sumitomo’s U.S. homebuilding operations, including subsidiaries DRB Group and Bloomfield Homes. These builders contributed around 40% of Sumitomo’s 11,267 U.S. home deliveries in 2024. The company plans to utilize 99 acres of unused land for future mass timber production.
Sumitomo’s move reflects growing efforts by foreign manufacturers to establish domestic production capabilities as trade barriers intensify.
