Dixon Lumber Plant could reopen in ’09

By Andy Brown

Published: August 25, 2008

The Eufaula city council voted unanimously Monday to pursue funding to assist in bringing M.C. Dixon Lumber Company back on line.

The company was forced to cease operations in February due to “the struggling housing market.” Approximately 140 employees lost their jobs as a result of layoffs.

According to the resolution adopted by the council, the retooling of Dixon Lumber Company, which was founded in Clayton in 1928 and moved to Eufaula in 1935, will create 106 jobs once the retooling process is complete.

The city is attempting to secure the funding for the retooling of the mill through the Alabama Department of Community Affairs Community Development Block Grant Float Loan program.

The city of Eufaula must be the applicant for the funding assistance from the Alabama Department of Community Affairs, but Dixon Lumber Company will be required to provide an irrevocable letter of credit to secure the float loan.

Dixon Lumber Company president and owner Bob Dixon Jr. declined to comment on what changes the mill will undergo should the funding be secured through the program.

“We’re not ready to make a formal announcement,” Dixon said.

“The resolution is one of the first steps in putting together a plan to retool the mill and reemerge.

“Once we get our arms around the plan a little better we’ll have more to say, but I think it’s premature to discuss it right now.”

Prior to ceasing operations earlier this year, Dixon Lumber Company managed timberland and manufactured quality, kiln-dried framing lumber, decking, timber and boards from Southern yellow pine logs. The lumber was then sold in domestic and export construction markets.

At one time, Dixon Lumber Company produced approximately 60 million board feet units of finished lumber annually.