Demopolis-based lumber company expanding to Coosa County

A Demopolis-based lumber company is expanding its operation to Coosa County.

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 Kellyton. It will be the company’s second operation in Alabama.

Two Rivers Lumber says it will create 130 jobs at the new 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.”

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.

Peak North America is taking the lead on construction of the facility, which is scheduled to start in June.