A hefty upgrade to Northern Hardwoods Lumber is in the works, an improvement to a mill that will protect 85 high-paying jobs in the Houghton County area.
The plans were made possible with the support of $1,250,000 in state and federal grants — part of a comprehensive economic development strategy to invest in communities and support people, according to the Michigan officials who made the recent announcement.
"Northern Hardwoods continues its long history of providing well-paying jobs through the processing of some of Michigan's highest value timber from the hardwood forests of the Upper Peninsula," says Jeff Ratcliffe, executive director of the Keweenaw Economic Development Alliance. "We are proud to support their continued investment in our community and appreciate the (Michigan Economic Development Corporation’s) financial support for Northern Hardwoods’ efforts to improve capacity and efficiency and remain a great employer in the Keweenaw."
What’s happening: Northern Hardwoods Lumber will install a new boiler and steam turbine at the company’s facility in the village of Atlantic Mine, southwest of Houghton on the Keweenaw Peninsula. The upgrade will reduce greenhouse gas emissions, leading to a more energy efficient process and reduced operating costs. The new biomass system uses a renewable energy source, sawdust, to power the steam boiler used to dry lumber and heat the mill. Without this investment, the company would have to close its doors at the end of the current boiler’s operation. The 85 jobs that will be protected as a result of this investment have average wages of $23.76 an hour, plus benefits – that’s $4.50 an hour above the regional median wage.
The back story: In the northern hardwoods near Lake Superior, long winters with lake-effect snow means trees grow slowly, resulting in wood that is known for its extreme strength. Company foresters select and harvest only the best trees, allowing younger trees to continue growing. “Sustainable harvested forests are our number one priority,” says Steve Hicks, president and CEO of Northern Hardwoods’ parent company, JM Longyear. The privately held Upper Peninsula firm acquired Northern Hardwoods Lumber, LLC, in 2015.
Begun in 1969, Northern Hardwoods currently produces 20 million board feet per year of world-wide premium hardwoods. The company produces ultra-white hard and soft maple, red oak, white oak, birch, cherry, walnut, hickory, basswood and aspen lumber in a variety of thicknesses, colors, grades and lengths. The wood is commonly used for furniture, hardwood flooring, architectural beams and moulding, bowling alleys, and cabinetry.
What people are saying: “Northern Hardwoods is deeply grateful for the support of the Michigan Economic Development Corporation,” says Cody Meier, director of financial planning and analysis at JM Longyear. “The project to install a new biomass boiler and steam turbine will enable us to continue operations, retain our talented workforce, and further utilize the renewable resources that the Upper Peninsula of Michigan offers
The investment: The company is anticipating $4,750,000 in capital investment with the support of the $250,000 Michigan Business Development Program grant from the Michigan Strategic Fund and an award last year of a $
1,000,000 Wood Innovations Grant from the United States Department of Agriculture.
The Northern Hardwoods investment is an example of how Michigan has positioned itself to compete for and win projects that create and protect good-paying jobs. The work also positions the state as a leader in climate action through both the
MI Healthy Climate Plan and federal policies like the CHIPS Act, Inflation Reduction Act, and Infrastructure Investment and Jobs Act, officials say.
Rosemary Parker has worked as a writer and editor for more than 40 years. She is a regular contributor to Rural Innovation Exchange, UPword, and other Issue Media Group publications.
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