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Gov. Ivey announces Two Rivers Lumber plans $115 million sawmill project

The project is expected to create 130 jobs in Coosa County.

Two Rivers Lumber sawmill.
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Governor Kay Ivey announced Thursday that Two Rivers Lumber Co. LLC plans to invest $115 million to build a state-of-the-art sawmill in Coosa County as the company’s second operation in Alabama.

Demopolis-based Two Rivers Lumber has committed to creating 130 jobs at the new Alabama sawmill, which 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,” said Governor Ivey. “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.”

Two Rivers was established by the McElroy family, owners of McElroy Truck Lines in Cuba, Alabama, and Roy Geiger, the owner of Sumter Timber in Jefferson, Alabama. 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.

“We are happy to be expanding Two Rivers in the state of Alabama and in Coosa County,” said Jay McElroy. “We spent over a year searching for a site and planning the project — we look forward to starting up the new operation in August 2025. The local and state support has been great throughout this process.”

Peak North America is leading construction of the facility in Kellyton, with a start set for June.

“Our team has a longstanding relationship with the team at Two Rivers, based on trust, integrity and a shared commitment to a thriving forest industry,” said Peak North America CEO Leif Norrgard. “We look forward to working together on this innovative project.”

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As part of the project, Two Rivers will create 130 jobs over a one-year period, with the positions paying an average annual salary of just over $51,000, according to data from the Alabama Department of Commerce.

The company also considered Mississippi as a potential location for the sawmill.

“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,” said Ellen McNair, Secretary of the Alabama Department of Commerce. “For local residents, this means new opportunities and a brighter future for their communities.”

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.

Denise Walls, executive director of the Lake Martin Area Economic Development Alliance, said Two Rivers is a perfect fit for the Lake Martin Regional Industrial Park, which is a partnership between Alexander City and Coosa County.

“I appreciate the support that the Coosa County Commission and Alexander City Mayor Woody Baird and his team have shown me throughout this almost 10-month recruiting process,” said Walls. “We all felt like this was a project worth fighting for, and we are excited that Two Rivers will make Coosa County their new home. The local impact of this project will be profound and far-reaching.”

Brenda Tuck, Rural Development Manager for the Alabama Department of Commerce, said the high level of support from the state and its partners demonstrates the Ivey Administration’s commitment to facilitating job growth in rural Alabama.

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“In collaboration with our allies across the state, we’re working hard to realize our goal of fully unlocking the growth potential of rural Alabama,” said Tuck. “It’s clear to me that opportunities are flourishing in the state’s rural communities, and the business world is beginning to take full advantage of the possibilities.”

The Alabama Political Reporter is a daily political news site devoted to Alabama politics. We provide accurate, reliable coverage of policy, elections and government.

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