SAGOLA TOWNSHIP, Mich. (WJMN) – LP Building Solutions is set to expand its operations in the UP with a $194 million dollar investment expected to create 50 jobs. The project was announced Wednesday by Governor Whitmer and the Michigan Economic Development Corporation (MDEC) with support from the Michigan Strategic Fund.
In addition to creating dozens of jobs, the investment will help retain the 151 jobs currently at the Dickinson County site, with support from a $325,000 performance-based grant through the Michigan Business Development Program. In a statement from LP Building Solutions, they estimate an additional 60 jobs are being created through the project.
LP Building Solutions has operated in Sagola Township in Dickinson County since 1988. The company produces high-performance engineered wood building products for new construction, repair and remodeling, and outdoor structures for builders, remodelers, and homeowners.
“This transformational investment by LP Building Solutions – one of the largest ever supported by Michigan’s economic development fund in the U.P. – will create at least 50 good-paying manufacturing jobs in Sagola Township and underscores the strength of our talented manufacturing workforce and the attractiveness of our business climate,” said Governor Whitmer. “Together, we will continue growing Michigan’s economy by empowering our hardworking people and innovative businesses. I will work with anyone to build on our momentum, and investments like this one by LP Building Solutions will help us continue moving our state forward.”
To meet growing demand, LP plans to convert its Sagola Township operations from the manufacture of oriented strand board to LP SmartSide Trim & Siding. In addition to new jobs, the conversion project has the potential for future expansion of a second processing line, which would create additional investment and employment opportunities in the region.
The expansion will include 134,000 square feet of new construction as well as new machinery and equipment.
“This project is an exciting win for the Upper Peninsula and further demonstrates Team Michigan’s commitment to supporting economic opportunities throughout all regions of the state. We appreciate LP Building Solutions’ vote of confidence in Michigan and our talented workforce,” said Quentin Messer, Jr., CEO of the MEDC and President and Chair of the Michigan Strategic Fund. “We are grateful to the Governor and legislators for the continued support of the Michigan Business Development Program. We’re proud to join our partners at Invest UP, Sagola Township, and the Dickinson Area Economic Development Alliance as we celebrate LP Building Solutions’ expansion and look forward to working together to grow, add jobs and provide greater opportunity for our friends and neighbors in the Upper Peninsula.”
Governor Whitmer added the following in the project’s announcement:
This will be a transformational project for the Upper Peninsula and will have a profound ripple effect of positive economic impact on Sagola Township as well as the surrounding region. In addition, the company will be contracting with local suppliers and contractors, creating additional investment and employment opportunities. LP offers competitive wages and full benefits to its employees and is also an active contributor to the local community.
“We are excited to see this significant investment in the LP Sagola facility,” said Dickinson Area Economic Development Alliance Executive Director Lois Ellis. “The project will align the plant to produce a high-value product and provide 50 additional family-sustaining jobs with excellent wages and benefits for area residents.”
Sagola Township anticipates approval of a property tax abatement in support of the project, and the MEDC also authorized a State Education Tax abatement to be used with the local abatement.
“Customer demand for LP SmartSide Trim and Siding is at an all-time high,” said Executive Vice President, General Manager of Siding Jason Ringblom. “To ensure our customers have the product they need to build beautiful, durable homes and structures, capacity expansion projects like our conversion of LP Sagola to the manufacture of LP SmartSide are incredibly important to LP. In addition to supplying the increased demand for SmartSide, converting LP Sagola to a siding facility positions the mill for years of growth and improved stability, which will benefit our local employees, their families, and the broader community. We are thrilled to welcome LP Sagola to LP’s SmartSide family of mills.”
You can learn more about careers with LP Building Solutions here.