Bright Spot in Troubled Economy?

Even with news of industry layoffs across the region, a new manufacturing plant is getting up and running in Smyth County.

At American Wood Fibers, Production Manager Terry Stam said he believes the business can do well despite the economic climate.
“We’re kind of, in a sense, in the recycling business,” Stam said when asked about the plant, which uses waste wood from the region’s timber processing industry and turns it into products for animal bedding, heating fuel and industrial uses. “American Wood Fibers has a history of being a stable company, and there’s good reason to believe that we’ll weather the storm OK.”

The new plant, which employs more than 50 people, is an expansion from a smaller plant in nearby Sugar Grove, which was founded by a local entrepreneur; Stam said the number of employees includes about 30 new jobs.

Sally Morgan, the county’s director of economic and community development, said the plant “started in Sugar Grove under different ownership, and they bought that opportunity in Sugar Grove and now they’re expanding it.”

American Wood Fibers, a privately owned company based in Columbia, Md., announced construction of the Marion plant in 2007. Stam said the plant now has one product line up and running, a second is starting and a third will come online in about a month.
“We are committed to making a go of it,” Stam said, noting that planning for the project began years ago – before the current economic downturn. “Once you start a big project like that, you’ve got the investment.”

Morgan said the company’s investment was about $9 million, based on information reported at the start of the project.

As an incentive package, American Wood Fibers received a $100,000 grant from the Governor’s Opportunity Fund and $40,000 from the Smyth County Industrial Development Authority.

John Patterson, operations manager for the plant, said it will do well because of its products.
“People still spend money on their pets, even in a bad economy, and we do animal bedding and pet bedding. And with the price of fuel, we sell the fuel pellets, which are competitively priced against oil. The good thing about our business is when some parts are down, other parts are up, so it kind of evens out.”

He added that when the economy improves the company will be well-positioned, and more employees will likely be hired.

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