Canfor, a manufacturer of forest products, announced that it is closing its Jackson facility, but expanding production with a second shift at its Fulton plant in an effort to consolidate operations at the company’s newer sawmills.
This restructuring, along with the company’s recently announced new Greenfield sawmill in Axis, is expected to grow Canfor’s regional manufacturing platform by 100 million board feet of production capacity.
“Canfor is working to optimize our operational footprint in southern Alabama to ensure we have well capitalized and highly efficient manufacturing facilities,” said Lee Goodloe, president of Canfor Southern Pine. “To this end, we are making the difficult decision to close the aging Jackson mill at the end of June, while expanding production at our nearby Fulton facility. We recognize this decision impacts our Jackson employees and community. However, we expect the majority of our employees will have an opportunity at either our expanded operation in Fulton, which will add a second shift, or in Axis once the new facility opens later this year.”
The Alabama WARN list says 122 employees will be affected by the closure in Jackson.
The Clarke County Commission and the Town of Fulton approved a 10-year tax abatement on the new installation of the #3 continuous dry kiln, fire protection upgrades, blower system upgrade and planer mill/kiln access road. The total capital investment on this stage of the project is approximately $19.3 million and is creating 64 jobs.
Along with the abatement, the Town of Fulton is receiving a $400,000 grant to upgrade the town’s sewer capacity. Providing the funds are the Alabama Department of Economic and Community Affairs, through a Community Development Block Grant, and the Delta Regional Authority, with the funds administered through the Alabama Tombigbee Regional Planning Commission, according to Rosalyn Sales, executive director of the Economic Development for Clarke and Washington Counties.
“We are excited to see Canfor grow in our region and look forward to many years of success and growth with them and other wood products companies here in the heart of the wood basket,” said Sales.
