RRSpin - Commissioners hold out for hope during Klausner tour

Tuesday, 19 December 2017 17:43

Commissioners hold out for hope during Klausner tour

Written by Lance Martin

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The beginning of the tour. rrspin.com

Halifax County commissioners remain concerned, but optimistic, a multi-million dollar lumber mill will open on the outskirts of Enfield.

Today three commissioners took about a two-and-half hour tour of Klausner 2, which is located off Highway 301 on Piper Lane.

Commissioners Linda Brewer, Vernon Bryant and Carolyn Johnson were shown the facility, which is not yet operational despite an original startup date in June, along with County Manager Tony Brown, Finance Director Mary Duncan, economic development commission Executive Director Cathy Scott and EDC board member Chip Fouts.

Commissioners requested a tour of the plant at a meeting earlier this month.

Klausner President of International Business Development Thomas Mende guided the group through the sprawling plant, which is in the stages of ramping up for production.

“I’m very cautious,” Johnson said before having to leave for another appointment. “I’m seeing few employees on the ground.”

Asked her feelings if Klausner meets its March or April startup date, Johnson said, “I’ll be a happy camper.”

Asked if it doesn’t, she replied, “I’m just going to be optimistic.”

Brewer had no comment.

Funds outside the company’s own investment of $100 million are around $14 million, Scott said before the tour. The $14 million includes local, state, federal and Golden Leaf monies, she said. “I would say progress is being made and they have continued that progress. They paid $850,000 in taxes last year.”

Mende said production at the company’s Florida facility is going well now after initial startup issues. The facility is shipping 35 percent to countries such as India and other foreign locations.

Once the Enfield facility is in production, Mende said the company will be serving New York, Baltimore and other locations in the Northeastern United States.

The company, he said, uses all parts of the tree. In Florida there is a company which buys all its bark.

Brown said the purpose of the tour was, “We wanted the commissioners to get a better understanding, see the dimensions and how large it is. I think they learned their lessons from Florida and are bringing folks to train here.”

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Bryant, chair of the commissioners, said, “I’m optimistic. They’ve got a long way to go.”

On the anticipated start-up date, Bryant said, “We have to take them at their word. Touring, they’ve still got a way to go but I’m hopeful.”
Scott said the rail spur at the plant is complete as is the infrastructure.

At tour’s end, Fritz Klausner, who heads Klausner Group, spoke with members of the tour.

“Thank you for your support,” he said. “I think everything is in place. I think Mr. Trump is helping us.”

Mr. Klausner said location to the United States was crucial for the company. “It’s tougher to get raw materials in Europe. The quality of logs and timber (in the U.S.) is very good.”

Lumber prices are 20 percent higher in Europe, Mr. Klausner said. “Thank you for your understanding, thank you for your patience.”

Said Scott: “We need jobs. We appreciate your investment. We’re going to look back and be proud of what we’ve created.”

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