U.S. to See New & Restarted Sawmills Coming Online in 2026

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Written by Eric Funderburk for IIR News (Sugar Land Texas)

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Summary

Despite an escalation in U.S. sawmill closures and consolidations, a few grassroot sawmills are set to come online in the U.S. in 2026, in addition to a restarted operation in Washington state.

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A Glimmer in the Dark

It hasn't been a particularly booming time for U.S. sawmills. The U.S. new-housing sector, one of the most important consumers of lumber, has been stuck in the doldrums for some time, consistently showing lower or flat new project counts throughout 2025.

In a December article, Fox Business cited the Hardwood Federation (Washington, D.C.) as saying that U.S. sawmill closures had become frequent, as well as the National Hardwood Lumber Association (Memphis, Tennessee) reporting that 4% of mills have been lost due to closures and consolidations, although no beginning date was provided for this figure.

Nevertheless, a few U.S. sawmills are on track to begin operations as entirely new undertakings this year, while another plant will be restarted after being closed for more than a decade.

Grassroot Undertakings

Most of the grassroot sawmills starting this year that are being tracked by Industrial Info are in the heart of timber country: the U.S. southeast, with new sawmills set to begin operations in South Carolina, Alabama and Mississippi.

One of the mills is going up in Galivants Ferry, South Carolina, an unincorporated community in the northeast of the state. The mill, which is approaching completion, represents a glimmer of hope to workers and timber truck drivers in the area who saw a major International Paper Company (IPC) (Memphis) paper mill in Georgetown, located about 55 miles south, close last year. However, the family-owned business starting the new mill represents a much smaller operation than the IPC mill. Once operational, the Galivants Ferry mill will supply railroad ties, pallet manufacturers, landscapers and wastewater treatment facilities, with a look toward businesses that use waste fiber in boilers. Construction is wrapping up after more than a year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.

Construction of a much larger undertaking, requiring investment of more than $100 million, is underway in Alabama and expected to come online in the coming months. Two Rivers Lumber Company LLC (Demopolis, Alabama) has been at work on the mill in Coosa County since 2024. The new mill has entailed the construction and installation of basic equipment, including cutoff saws, belt conveyors, edgers, continuous dry kilns and much more. The new plant is expected to create about 130 jobs over its first year of operation. Subscribers can learn more by viewing the project report.

An even larger grassroot sawmill, representing nearly a quarter of a million dollars in investment, is expected to start up toward the end of the year in Wayne County, Mississippi. The project is part of an expansion by Hood Industries (Hattiesburg, Mississippi), a structural wood provider that has had a presence in Mississippi for more than 40 years. The new mill in Waynesboro is expected to be completed in October and joins two other Hood mills in Mississippi and another in Louisiana that primarily process the region's southern yellow pine. Subscribers can click here to learn more.

Restart

A 2014 announcement from lumber company Interfor (Burnaby, Canada) that it was closing a sawmill and planer mill in Clallam County, Washington, represented the loss of more than 85 jobs. Clallam County is located on Washington's Olympic Peninsula, a stone's throw away from Canada's Vancouver Island across the Strait of Juan de Fuca. Forks, the location of the planer mill, had gained some fame years some earlier as the setting of Stephanie Meyer's blockbuster Twilight fantasy horror series of books and films, but the notoriety didn't affect an ailing timber sector. Interfor's 2014 announcement began the consolidation of the company's operations to its Port Angeles sawmill, located less than 50 miles away.

Residents of the towns of Beaver, where the sawmill is located, and Forks, home to the planer mill, were thrilled in 2022 when Sustainable Green Team (Astatula, Florida) announced that it would restart the Clallam County operations. In the coming months, after approximately three years of work, that goal will be realized, and the operations will once again become viable. Subscribers can learn more by viewing the project report.

Other Projects

The new mills and restart are the highlights of the U.S. sawmill sector so far this year, although important equipment additions and upgrades are occurring at operational mills in Maine, Arkansas and other locations. New-home construction is expectedly to grow only modestly, with the National Association of REALTORS reporting a few days ago that home inventory levels are about 20% above one year ago and predicting only a 1% gain in single-family home construction for the year.

Key Takeaways

• Industrial Info is tracking grassroot sawmill startups in Mississippi, Alabama and South Carolina.
• Another timber operation, shuttered in 2014, is being restarted in Washington.

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About IIR News
IIR News is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).

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