Construction Begins on $110 Million Louisiana Sawmill Expected to Create Nearly 500 New Jobs

On July 11, 2022, Louisiana Governor John Bel Edwards announced the start of construction on a $110 million lumber production facility that will support the creation of nearly 500 new jobs in Louisiana.

Teal Jones Group, a Canadian international forestry products company, announced in December that it was looking into locating a new southern yellow pine lumber plant in Northwest Louisiana. The company made its final investment decision official Monday at a groundbreaking ceremony attended by LED Secretary Don Pierson, Teal Jones CEO Tom Jones, company President Dick Jones, and other regional and local officials.

“Louisiana’s wealth of timber resources has made it a prime destination for lumber and sawmill business operations for many years,” Gov. Edwards said. “We’re gratified that Teal Jones has chosen to become a part of that long tradition. This project will stimulate economic activity, create good jobs in Louisiana’s Northwest Region and contribute to the revitalization of our state’s rural communities. It is a powerful reaffirmation of the important role our state’s agribusiness sector plays in the growth and diversification of Louisiana’s economy.”

The 235-acre greenfield facility in Plain Dealing, Louisiana, is currently under construction and is expected to be completed in Q3 2023. Access to nearby railway infrastructure and timberlands were cited as important factors in the company’s decision to build its first plant in Louisiana. The company, headquartered in British Columbia, also has operations in Virginia and Mississippi in the United States.

The project is expected to generate 125 new direct jobs with annual salaries averaging $47,000 plus benefits. According to Louisiana Economic Development, the project will also support at least 369 indirect jobs, for a total of 494 new jobs in Louisiana’s Northwest Region. At peak construction, the company anticipates up to 120 construction jobs.

When completed, the facility will have a production capacity of 300 million board feet per year and will produce a wide range of dimensional and specialty lumber products. In addition to lumber, the company intends to sell residual fiber products to local pulp and pellet plants, such as chips and sawdust.

Louisiana offered the company a competitive incentive package that included the services of the LED FastStart workforce development program, which will support recruitment and training, in order to secure the project. In addition, the company is expected to complete the application and approval process for the state’s Quality Jobs program, as well as pursue a payment in lieu of taxes, or PILOT, agreement with local taxing entities.