Timber mill moving to former Georgia-Pacific plant

EL DORADO — Work is progressing on a new timber mill that is moving into the former Georgia-Pacific plant on U.S. 167, members of the Union County Quorum Court learned this week.

During a regular meeting on Thursday, Justice of the Peace Dean Storey inquired about the status of the project involving Conifex Timber, Inc., a Canadian-based company whose primary operations are timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.

JP Mike Dumas, who also serves as interim president and chief executive officer of the El Dorado-Union County Chamber of Commerce, said Conifex will produce lumber at the U.S. 167 site.

Union Lumber Company is expected to be up and running in June 2017, and Conifex anticipates hiring about 140 employees for the new company.

Some employees, approximately 16 to 18, have already been brought on board and are working at the site, Dumas said.

He said site manager Robbie Hanry has been keeping him updated on the work that is under way at the plant.

Hanry, of Junction City, is a former Georgia-Pacific employee who was instrumental in helping to find a lumber company that would be interested in setting up shop in the U.S. 167 facility and getting the timber mill back in operation, Dumas said.

“Two weeks ago, they issued 11 purchase orders for equipment. Some of the equipment is going to have to be specially designed, so the start date has been pushed to the end of June (2017),” Dumas reported.

“They’ve turned in 11 purchased orders, so it means they’re committing money,” Dumas said.

Natural gas supply line

The city of El Dorado is contributing $600,000 from the El Dorado Forward economic development sales tax to install a natural gas supply line to the Union Lumber facility.

The money was approved in December 2014 as a local component in an economic development incentive package that was offered by the Arkansas Economic Development Commission.

Union County Judge Mike Loftin said then that the new line was needed to accommodate increased productivity and the latest industry technology that are anticipated with the new mill.

On July 8, Mayor Frank Hash said he had issued a “stop work order” on the funds until he could get an update on the project.

Hash also questioned the need for a larger natural gas supply line since no expansions were planned for the facility.

He lifted the “order” two days later after

hearing from Hanry, who explained that the boiler permit from the old GP plant had expired long before Conifex purchased the property.

As a result, the company decided to switch to natural gas, instead of trying to use wood byproducts to produce steam.

The process would require an additional and larger gas supply line, Hash learned.

Hash had also referenced money the city spent to build a manufacturing facility and office building to help attract the California-based Therma-Flite, which manufactured screw heat exchangers for municipal sludge dryers, to the Champagnolle business park.

Therma-Flite idled its El Dorado plant last year after three years in operation due to a downward trending cycle in the industry.

Hash later said that Conifex is a heavy investor in its new venture in Union County, and most other investors are in-state.

“Although the new gas pipeline is greatly appreciated, it is small change when compared to what Conifex has on the table,” the mayor said.

Loftin said Thursday that he has secured the rights-of-way for the gas line, and the project is expected to go to bid within the next couple of weeks.

Robert Edmonds, El Dorado director of public works, is preparing the bid specifications.

Dumas said the AEDC is keeping a close eye on El Dorado and Union County, telling JPs that the state has steered four industry prospects toward the area.

“If all four of those prospects came to this county, it would mean 800 jobs. That’s not going to happen, but if we could get just one …,” Dumas said.

“It’s a dream,” added JP Johnny Burson.

Dumas said the economic development recommendations from the state are encouraging.

“I remember a time when the state didn’t think about South Arkansas, so it’s good that the state is talking about El Dorado and Union County,” Dumas said.

Other business

In other business, the quorum court adopted several ordinances, including:

• The approval of $12,285 from the general fund for a state grant to upgrade the security cameras in the Union County Courthouse.

• The transfer of $15,000 from general fund to the postage line item in the county tax collector’s budget.

• The approval of a request to donate a used patrol unit from the Union County Sheriff’s Office to South Arkansas Community College.

Sheriff Mike McGough said the vehicle is out of service, and it would be used for instructional purposes for the college’s Criminal Justice Program.

McGough said students in the program practice real-life law enforcement programs and scenarios, such as traffic stops and crime-scene searches.

“When they participate in (student criminal justice) competitions throughout the state, they don’t have a vehicle,” he said.

He said SouthArk has assured him that the vehicle will not be driven off campus, and it will be kept in a secure area when its not in use.

Additionally, only instructors and the campus resource officer will have access to the vehicle, the sheriff said.

“We’ll take all the sheriff’s department markings off, and the college logo will go on the doors,” he said. “The (emergency) lights will not be blue, so we won’t be violating the law there.”

He also said vehicle will have markings denoting that it is an instructional vehicle for students.

Tia Lyons may be contacted at 870-862-6611 or by email at [email protected].

Upcoming Events