Hardwood railroad tie maker doubles operations; credits lack of trucking
December 12, 2018 | 12:57 pm CST
NIXBURG, Al. - An Alabama sawmill will invest $18 million to double operations.
Central Alabama Wood Products, a specialist in hardwood railroad cross ties, will replace one of its current mills with a high-tech sawmill operation.
Company co-owner Larry Jones told local news Alex City Outlook that railroads are benefiting from the region's lack of truck drivers, and that's fueled his business.
“Railroads have been doing well because of the shortage of truck drivers,” Jones told the Outlook. “They are continuing to reinvest in their systems. The average life of a crosstie is 30 years and 20 million crossties are replaced each year just to keep the rails maintained.
The expansion won't create any jobs for the company, but feeding the improved capacity will create up to 50 jobs for nearby logging, timber, and trucking companies, Jones said.
Tax abatements, like 10 years of property tax, were largely responsible for the expansion. The company operates three sawmills in Alabama and has a $2 million payroll.
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