Nearly $2 million in federal and private matching dollars will help a Mars Hill pallet manufacturer expand to a new facility in Houlton.
The Southern Aroostook Development Corporation secured a $1 million grant on Friday through the Northern Border Regional Commission’s Forest Economy Program to support the Houlton Industrial Park project.
The grant funds, combined with $800,000 from private donors, will be used by the corporation to develop a modern manufacturing facility that it will lease long-term to Mars Hill-based Kearney Pallet.
According to the grant application, the project is expected to increase production by approximately 45% while retaining existing jobs, creating new employment opportunities, and strengthening the wood-products supply chain that supports Maine’s agricultural and manufacturing sectors, according to Johanna Johnston, Southern Aroostook Development Corporation executive director.
“We’re incredibly excited about what this project means for our future,” Travis Kearney, owner of Kearney Pallet, said in a Friday statement. “Demand for our products continues to grow, and this new facility will allow us to operate more efficiently, increase production, and better serve our customers for years to come. “
The development corporation applied for the grant as part of its mission to support business expansion, job creation and long-term economic growth in Southern Aroostook. The new facility will boost a rural community that has aimed to attract manufacturing expansion and growth over the past several years.
While retaining existing jobs, the expansion will create new employment opportunities and strengthen the wood-products supply chain that supports Maine’s agricultural and manufacturing sectors, Johnston said.
The investment will generate benefits throughout the forest economy by increasing demand for Maine-harvested timber and creating additional markets for low-grade wood, benefiting landowners, loggers, truckers, sawmills and other businesses connected to the forest products supply chain, she said.
The project evolved through conversations between the development group and Kearney Pallet about the company’s long-term growth plans.
Kearney Pallet had said it needed more manufacturing space to continue growing, and the development corporation saw an opportunity to leverage federal funding to address a significant barrier to expansion while creating broader economic benefits for the region, Johnston said.
As they explored expansion opportunities, it became clear that developing a modern manufacturing facility in the Houlton Industrial Park would allow the company to increase production capacity, improve efficiency, and create additional demand for Maine forest products, Johnston said.
“The project was a strong fit for the Northern Border Regional Commission’s Forest Economy Program because of its potential impact on Maine’s forest products sector and rural economy,” she said.
Once the facility is built, Kearney will move its operation to Houlton on a long-term lease. The building will be inside the Houlton Industrial Park, near Interstate 95 and close to major Northeast markets, available industrial land, and the lowest electricity rates in Maine through the Houlton Water Company.
“This project highlights many of the reasons businesses choose to invest in southern Aroostook,” Johnston added. “Our region offers access to natural resources, affordable energy, transportation infrastructure, and a strong workforce. This investment sends a positive message that Houlton is a place where businesses can grow and succeed.”
The project also represents a significant win for the industrial park and the town. The new facility will add taxable value within the Airport Tax Increment Financing District, creating additional resources that can support future economic development and infrastructure investments, Johnston said.
“As a company with deep roots in Aroostook County, we’re proud to continue investing here, creating opportunities for local workers, and supporting the forest products industry that remains so important to our region,” Kearney said.
Construction is expected to begin following completion of grant agreements and project implementation requirements with the Northern Border Regional Commission.
“Our goal is to move the project forward as quickly as possible while ensuring all federal requirements are met,” Johnston said.
