A new US$439 million wood production mill is set to begin construction in the coming weeks in Cohasset, Minnesota. The plant is expected to bring several new production and construction jobs. The plant will produce orientated strand boards (OSB) for Huber Engineering Woods. The Minnesota Department of Employment and Economic Development is also considering a US$20 million loan from its 21st Century Fund to help finance the project. The Iron Range Resources and Rehabilitation Board (IRRRB) and DEED will forgive their loans if Huber meets certain benchmarks, primarily employment, and production goals, according to Matt Sjoberg, executive director of development for IRRRB in addition to the US$15 million the board unanimously approved for a forgivable loan.
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A majority of the funding, an estimated US$376.8 million, is coming from Huber’s private financing, and the remaining US$27.5 million will likely be sourced from partner investors. The 800,000-square-foot OSB wood mill plant would be built on 400 acres near Minnesota Power’s Boswell Energy Center in Cohasset, a town of over 2,700 people in southern Itasca County. OSB is used in the construction of walls, flooring, roof sheathing, and furniture. To construct the plant, around 300 to 400 construction workers are needed. Work is expected to start this fall or spring of next year, said Brian Carlson, president of Huber Engineered Woods.
IRRRB plans to invest an additional US$600,000 to support workforce development and training. DEED is also granting the project the same amount through two of its job training and incentive programs, according to meeting material. The project may see more public investment. Additional funding for production incentives is expected to be directed to the project through a bill lawmakers will approve in the ongoing special session, said Senator Tom Bakk. Huber anticipates offering full-time employees a median wage of US$31 per hour, in addition to benefits. The location will also service about 150 logging trucks each day, adding to the number of jobs impacted by the new plants, according to meeting material.
