Canfor Corp. announced plans to expand production at its facility in the Clarke County community of Fulton as it moves to optimize its operational footprint in southern Alabama, where it is also building a state-of-the-art sawmill in nearby Mobile County.

As part of the restructuring, Canfor plans to permanently close its aging mill in Jackson, also in Clarke County, as it adds a second production shift in Fulton.

Lee Goodloe, president of Canfor Southern Pine, said he expects the majority of employees in Jackson will have the opportunity to join the expanded operation in Fulton or its $210 million sawmill in Axis when it opens later this year.

“Canfor’s recent investments in southern Alabama demonstrate our commitment to Clarke County and build upon a proud history of operations in the region,” Goodloe said. “We appreciate our employees and our strong relationships with suppliers, contractors, partners and customers.

“Consolidating our operations in southern Alabama in modernized facilities — with leading technologies and innovation — will enable Canfor to better serve our local and global customers while providing more sustainable jobs and improved working conditions for our employees,” he said.

The strategic moves will expand the company’s regional manufacturing platform by 100 million board feet of production capacity and consolidate operations at updated facilities that are well positioned to be competitive for the long haul.

Canada-based Canfor said the total capital investment in this stage of the optimization project is $19.3 million, leading to the creation of 64 jobs.

Canfor plans to expand production at its facility in the Clarke County town of Fulton as it moves to optimize its operational footprint in southern Alabama, where it also is building a $210 million sawmill. (Canfor)

Support system

To advance the project, the Clarke County Commission, along with the town of Fulton, approved a 10-year tax abatement on the new installation of the No. 3 continuous dry kiln, fire protection upgrades, blower system upgrade and planer mill/kiln access road.

In addition, the town of Fulton is receiving $400,000 in grants to upgrade its sewer capacity because of the growth. The funding is split between the Alabama Department of Economic and Community Affairs‘ (ADECA) Community Development Block Grant and Delta Regional Authority funds, administered through the Alabama Tombigbee Regional Planning Commission.

“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 Rosalyn Sales, executive director of Economic Development for Clarke and Washington counties.

Sales thanked the Alabama Department of Commerce, the Alabama Department of Revenue, ADECA and the Clarke County Commission and its team for helping to keep the projects moving forward.

Brenda Tuck, Rural Development manager for the Alabama Department of Commerce, said Alabama’s forest products industry, operating largely in the state’s rural counties, continues to grow. New investment in the sector approached $2 billion between 2021 and 2023, Department of Commerce data shows.

“Canfor’s strategic optimization plan reinforces the company’s commitment to Alabama, and its production expansion in Fulton will provide a long-term benefit to rural Clarke County in the form of a competitive and modernized facility,” Tuck said.

This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.