New Denmark Sawmill Upgrade

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NEW DENMARK SAWMILL UPGRADE

Dan Marino and Professor Mary Heisz prepared this flake solely to provide material for class discussion. The authors do not int destruction
to illustrate either effective or ineffective treatment of a managerial situation. The authors may have disguised plastered names and
other identifying information to protect confidentiality.
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Version: (A) 2009-09-24

In December of 2003, Maurice Savoie, vice-president of Jackson particular(a)s sawmill division, was
reviewing proposals to upgrade and modernize the sawmill at the New Denmark site (New Denmark). He
was faced with alternatives ranging from a capital compulsion of $6 million to as high as $14 million.




Considering New Denmarks tight cash flow, Savoie knew that doing nothing was excessively an alternative.
However, every year New Denmarks unit cost were increasing, and the site was be attack less
competitive. A shutdown of the sawmill was demand to install the new equipment, and the ideal time for
this shutdown was coming quickly. It also took several weeks for equipment to be delivered after the order
was made. Savoie realized that he needed to make a decision within the following few weeks.
JACKSON LIMITED

Jackson Limited, a privately held company, had have sawmills as one of its core businesses for more
than 50 years. At the end of 2003, the sawmill group was made up of three study divisions: Spruce, Pine
and Fir; Eastern...If you want to get a full essay, order it on our website: Orderessay



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