Demopolis-based Two Rivers Lumber Co. will build a $115 million sawmill in Coosa County, creating 130 jobs.

Peak North America is leading construction of the facility in Kellyton, with a start set for June. The mill is set to open in August 2025.

It will specialize in the production of Southern Yellow Pine dimensional lumber.

“This growth project will have a significant impact on Coosa County and cast many economic ripples throughout the region,” Gov. Kay Ivey said in an announcement. “Alabama’s forest products industry is a national powerhouse, and it’s great to see Two Rivers Lumber continue to grow in its home state.”

The mill’s jobs will be created over a one year period, with an average annual salary of more than $51,000, according to data from the Alabama Department of Commerce.

Alabama won out over Mississippi as a potential location.

Two Rivers was established by the McElroy family of McElroy Truck Lines in Cuba, and Roy Geiger, the owner of Sumter Timber in Jefferson. The company opened its first sawmill in Marengo County in 2017. Today, the facility near Demopolis has an annual capacity of 200 million board feet and 145 full-time employees.

Jay McElroy said the company spent more than a year searching for a site.

“We are happy to be expanding Two Rivers in the state of Alabama and in Coosa County,” McElroy said. “The local and state support has been great throughout this process.”

To support the project, the Lake Martin Area Industrial Development Authority is donating 110 acres of land, valued at $2.2 million. In addition, AIDT, the state’s primary workforce development agency, is providing services to the company.

“This investment from Two Rivers Lumber will generate a significant number of well-paying jobs while also driving economic growth in the Coosa County area,” Alabama Commerce Secretary Ellen McNair said. “For local residents, this means new opportunities and a brighter future for their communities.”