Conifex Timber Inc. of Vancouver announced on Monday that it is investing $80 million in modernizing and re-starting a sawmill in El Dorado, creating 120 full-time jobs.
The move follows the company receiving a $130 million secured revolving credit facility earlier this month. The site was formerly owned by Georgia Pacific and will be Conifex’s first facility in Arkansas and the South.
The project also received the following state incentives:
- Community Development Block Grant funds – A $1 million grant that will be provided initially and followed up by a second $1 million grant after 10 months if job creation targets are reached.
- Create Rebate – A cash rebate equal to 4.5 percent of total payroll associated with the new jobs created for six years. This is capped at $1.5 million in total rebates.
- Tax Back – Sales tax refunds on building materials, taxable machinery and equipment associated with the project.
Gov. Asa Hutchinson joined Conifex’s leadership and local officials at Monday’s announcement.
CEO Ken Shields said in a news release that the project provides access to lumber and timber markets in the South and the investment will ensure long-term sustainability in adding to contributing to the company’s overall growth.
“We are pleased by the warm welcome and professionalism of the government and private sector partners we have worked with here in El Dorado and throughout the state,” Shields said.
Conifex makes structural grade Spruce Pine Fir dimension lumber and plans to produce 180 million board feet initially at the El Dorado mill. Sawtimber purchases are expected to be 700,000 tons per year, worth $30 million, from suppliers within a 60-mile radius.
“The industry directly employs more than 37,200 workers in Arkansas, and I’m thrilled to welcome Conifex to the state,” Hutchinson said. “This will have a significant economic impact on many families throughout South Arkansas.”
Conifex was established in 2008 when it acquired its first idled sawmill in British Columbia. A second mill followed two years later as well as a biomass power plant that has been in operation since 2015.
Great Lakes Plant to Open
In a separate announcement, Great Lakes Solutions, a business of Chemtura Corp. of Philadelphia, marked the opening of a new 11,000-SF pilot plant at the company’s South Plant facility in El Dorado.
Hutchinson joined company leaders for the announcement. The company said the expansion will create six new “high-paying jobs.”
Dave Bartley, technology manager for Great Lakes’ Arkansas plants, said “the new pilot plant is part of Chemtura’s ongoing commitment to innovation and new product development.”
He said the plant is designed to “serve as a scale-up and test facility within the global technology group and will bridge between traditional laboratory experimentation and full-scale commercial production.”
The project is also receiving the tax back incentives, as well as the “Advantage Arkansas” incentive, which provides an income tax credit based on payroll of new jobs. Credit will equal 3 percent of payroll.
Great Lakes provides materials and services for electronics, electrical components, building and construction, fine chemicals, agriculture, power generation, transportation, water treatment, the oil and gas industry and more.
“We are always encouraged to see existing companies in the state continue to grow and diversify their Arkansas operations,” Hutchinson said. “Great Lakes Solutions is a leader in its sector and the company’s decision to add a new research-and-development plant to their El Dorado facility is a testament to the quality of the workforce in South Arkansas.”
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