Georgia-Pacific said Thursday that it plans to invest $37 million in its Gurdon lumber mill, increasing capacity by 60 percent by the third quarter of next year.
Another $20 million may be invested in a nearby plywood mill, the Atlanta-based company added in a statement.
"As the housing market continues a slow, but steady improvement, our plans to invest at Gurdon ensure our ability to meet the growing needs of our customers and become their lumber supplier of choice," Georgia-Pacific lumber division vice president and general manager Fritz Mason said. "This is an opportunity to broaden our product offerings, enhance quality and improve our cost competitiveness."
A spokesman for the company said it won't be known whether new jobs would be added until after the improvements are made.
The investment in the plywood mill is still being evaluated, the statement added, noting that the money would go to increasing efficiency and reducing air emissions.
Georgia-Pacific has eight facilities in the state and is one of the three largest manufacturers in Arkansas, employing about 2,700 people.
"This significant expansion investment in Gurdon confirms Georgia-Pacific's commitment to doing business in Arkansas and is a testament to the company's confidence in the local workforce," Economic Development Commission Executive Director Grant Tennille said.