Canadian company purchases two lumber mills in Virginia
A Canadian lumber and wood products company plans to invest $31.75 million in two lumber mills in Southern Virginia and the Northern Neck, creating an estimated 126 new jobs, Gov. Ralph Northam announced Wednesday.
British Columbia-based Teal-Jones Group recently purchased Potomac Supply LLC in Westmoreland County and Pine Products Inc. in Henry County. A family-owned company, Teal-Jones Group has committed to source 100% of its net new timber purchases from Virginia, totaling about $100 million over the next four years, according to the governor’s office.
Teal-Jones plans to invest $21 million and create 67 new jobs at Pine Products and invest $10.75 million to create 59 jobs at Potomac Supply, expanding sawmill and dry kiln operations at the mills. The company operates eight mills in Canada, plus mills in Oklahoma and Washington state. The Virginia purchases are the company’s largest investment in the United States to date, and Virginia competed with Oklahoma and Washington for the projects.
Several state and local agencies assisted in attracting the Teal-Jones projects, which will receive $650,000 in grants from the Commonwealth’s Opportunity Fund and the Governor’s Agriculture and Forestry Industries Development Fund. The company also is eligible to receive sales and use tax exemptions on manufacturing equipment, plus benefits from the Port of Virginia’s Economic and Infrastructure Development Zone grant program and the state’s Enterprise Zone program, which is administered by the state Department of Housing and Community Development. The Virginia Jobs Investment Program will also support Teal-Jones’ job creation efforts with funding and services.
“We have absolutely amazing crews down here in Virginia, and the community support and welcome from Henry County and Westmoreland County during the transition has been incredible,” Teal-Jones Group President and CEO Dick Jones said in a statement. “Every step of the way the folks at VEDP [Virginia Economic Development Partnership], VDACS [Virginia Department of Agriculture and Consumer Services] and the local economic development arms have been looking for ways to help us build a stronger foundation for our mills and employees. We plan on putting down deep roots here in Virginia and want to thank Gov. Northam, the commonwealth and Henry and Westmoreland counties for welcoming us with open arms and making us feel at home.”