British Columbia-based Teal-Jones Group is investing a total of $31.75 million to expand sawmill and dry kiln operations at two recently acquired lumber mills in Martinsville and Kinsale, Virginia.
At Pine Products Inc. in Henry County, the company will invest $21 million and create 67 new jobs and at Potomac Supply, LLC in Westmoreland County, the company will invest $10.75 million and create 59 new jobs.
The Teal-Jones facilities in Virginia manufacture dimensional Southern yellow pine lumber in a variety of grades and sizes. Most product is kiln-dried and sold to a variety of manufacturers, retailers and wholesalers. Projects at both facilities will include new equipment and updates facility improvements. The company is committing to source 100 percent of its net new timber purchases from the Commonwealth, which over the next four years is expected to top $100 million.
“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,” said Dick Jones, CEO and President of Teal-Jones Group. “Every step of the way, the folks at VEDP, VDACS, 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 Governor Northam, the Commonwealth, and Henry and Westmoreland counties for welcoming us with open arms and making us feel at home.”
Partnering closely with the Martinsville-Henry County Economic Development Corporation and Westmoreland County, the Virginia Economic Development Partnership collaborated with the Virginia Department of Agriculture and Consumer Services, the Virginia Department of Forestry, and The Port of Virginia to bring both projects to Virginia. Governor Northam approved a $200,000 grant from the Commonwealth’s Opportunity Fund (COF), as well as a $200,000 grant from the Governor’s Agriculture and Forestry Industries Development (AFID) Fund, to assist Henry County in securing the project. The Governor also approved grants of $125,000 each from the COF and the AFID Fund to assist Westmoreland County with the project.
The company is eligible to receive Sales and Use tax exemptions on manufacturing equipment, as well as benefits from The Port of Virginia Economic and Infrastructure Development Zone Grant Program for the projects. Teal-Jones Group also qualifies for state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. Funding and services to support Teal-Jones Group’s job creation will be provided through the Virginia Jobs Investment Program (VJIP).
“Teal-Jones Group’s decision to create a total of 126 new jobs and nearly triple its lumber production in two rural regions of the Commonwealth is a tremendous win for Henry and Westmoreland Counties, Virginia’s forestry sector, and the industry employees and forestland owners,” said Secretary of Commerce and Trade Brian Ball. “Abundant raw materials and an advanced logistics infrastructure have made Virginia the location of choice for wood products companies from around the world, and we are thrilled that an international company of Teal-Jones Group’s caliber will make this significant investment in the Commonwealth.”
“With 62 percent of the Commonwealth covered by forestland and two-thirds of that land privately owned, having a robust forest products industry in Virginia is crucial for strong rural economies and to incentivize landowners to actively manage their lands,” said Secretary of Agriculture and Forestry Bettina Ring.
“This announcement will result in jobs and economic investment in Virginia, and we are happy to join Henry and Westmoreland counties and VEDP in welcoming Teal-Jones Group to Virginia,” said John F. Reinhart, CEO and Executive Director of The Virginia Port Authority. “Teal-Jones is a world-wide exporter of forest products, and The Port of Virginia is ready to serve as the company’s East Coast gateway to world markets. We are looking forward to working with the company’s logistics team to promote and export Virginia forest products around the globe.”