Wood & Panel

Canfor to invest in new sawmill in southern Alabama

 Tuesday, August 2, 2022

Canfor Corporation will invest approximately US$210 million to build a new, state-of-the-art sawmill complex in southern Alabama, company announced. Using leading technology, the new sawmill will have an annual production capacity of 250 million board feet on a two shift basis and will provide a new, modern work environment for the approximately 130 people who will be employed directly, in addition to supporting significant indirect jobs. The facility design includes investment in a biomass-fueled lumber drying system. Startup of the facility is anticipated in the third quarter of 2024.

“Building on Canfor’s proud operating history in Alabama, we are excited to invest in a new world-class facility that will ensure our long-term ability to operate competitively. In addition, the facility’s versatility and flexibility will enhance our ability to more closely align our production of high-quality products with market demand,” said Don Kayne, President and CEO, Canfor.

“We greatly value our employees and are committed to providing family-supporting jobs and generating economic activity in the region. We are pleased to be transforming the workplace for our employees by providing a new, modern facility that will continue to operate for generations,” said Tony Sheffield, President, Canfor Southern Pine.

“The expansion of Canfor is a strategic investment in the community, sawmill industry and economy of South Alabama. As one of the most heavily forested states in the nation, Alabama has ample opportunity to attract significant new capital investment in the forest industry, and it’s apparent we’re doing just that,” said Governor Kay Ivey. “Mobile – and all of Alabama – has been proud to be the host of Canfor’s U.S. headquarters, and we look forward to seeing their continued, nation-wide success after this highly-anticipated and much-needed facility growth.”

The new facility will replace the existing operation in the City of Mobile. Following the construction and startup of the new facility, an orderly wind down of the Mobile operation will be undertaken. All current employees will have the opportunity to remain with the company.

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