By Jeff Stagl, Managing Editor
An Austria-based wood panel products producer plans to expand its manufacturing footprint in Alabama. That, in turn, promises to grow carloads for Norfolk Southern Railway.
Within the next two years, Kronospan expects to open a new $350 million, state-of the-art oriented strand board (OSB) manufacturing plant on its 460-acre campus in Oxford. Covering 44 acres, the facility will feature product storage areas, a rail spur and loading docks.
Kronospan already produces laminate flooring, medium-density fiberboard, particle board, thermally fused laminate and other wood products at a facility that opened on the campus in 2008. It’s the largest and most vertically integrated wood products manufacturing site in North America, according to the company.
The new OSB plant will expand the company’s portfolio of wood panel products in the United States to meet customers’ growing need for those products and high-quality construction materials, Kronospan officials say.
Kronospan has helped advance workforce development efforts in the Oxford area, initiating a forklift training program, supporting an advanced manufacturing education program at Gadsden State Community College and forging classroom partnerships.
“As we continue to grow our U.S. operations, we are very conscious of the impact on our local communities and are consistent in our philosophy of creating a sustainable future for generations to come,” said Kronospan Director of Human Resources John Connell in a press release.
Kronospan currently produces laminate flooring, fiberboard, particle board and other wood products at its 460-acre campus in Oxford. Alabama Department of CommerceThe company worked with the Alabama Department of Commerce, Calhoun County Economic Development Council, city of Oxford and NS on the OSB plant’s development. NS has maintained a business relationship with Kronospan for many years.
The railroad helped with track design and layout. NS will construct a new mainline switch and supporting tracks, while Kronospan will build its own tracks and tie into the railroad’s supporting tracks.
The Class I successfully demonstrated to Kronospan “how the new rail operation could interact with the facility and how this new business can be added into [our] network operations,” NS officials said in an email.
Work on the Oxford site and facilities is underway. NS expects the rail work to start in the fourth quarter.
There are 10 existing or upcoming OSB plants along NS’ lines in its 22-state network. The new Kronospan facility will add to what’s become lucrative wood products traffic for the railroad.
“This will be an increase in business for [us], and we are proud to grow with and serve Kronospan on their shipping needs,” NS officials said.
