Canfor To Invest $210M In New Southern Alabama Sawmill Complex

The forest products company's new facility will provide a new, modern workplace for approximately 130 employees.

British Columbia-based Canfor Corporation will invest approximately $210 million to build a state-of-the-art sawmill complex in southern Alabama, near Mobile. 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 modern work environment for approximately 130 employees.

“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,” said Don Kayne, President and CEO, Canfor. “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.”

Canfor Alabama
(Source: Alabama Department of Commerce)

In alignment with the company’s sustainability goals and decarbonization targets, the facility design includes investment in a biomass-fueled lumber drying system. Canfor expects the new facility to be open by the third quarter of 2024.

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

“This investment will allow us to continue our legacy of operations and long-term commitment to Mobile County, enhance our manufacturing ability to better align with the high-quality products our markets demand, and importantly, it’s an investment in our people,” Sheffield added.

The new sawmill will replace Canfor’s existing facility in the City of Mobile, according to the Mobile Chamber.

“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.”