NC Rail: Completed project boosts economic development opportunities
Story Date: 7/1/2021

 

Source: NCDOT, May/June 2021


In March of 2021, a rail spur and yard construction project was completed which serves the new EGGER Wood Products LLC manufacturing facility in Lexington, N.C. The Rail Industrial Access Program under the Freight Rail and Rail Crossing Safety Improvement (FRRCSI) fund provided $400,000 towards track construction costs. The EGGER manufacturing facility is benefiting from distribution opportunities by rail, contributing to reduced shipping costs while reducing heavy truck traffic on our state’s highways

EGGER Group, headquartered in St. Johann, Tirol, Austria, is one of the leading manufacturers of international wood-based materials. EGGER operations provide a variety of wood products that support the furniture industry, wood distribution, building markets and the home improvement business. The company’s product range includes laminates, raw particleboard, thermally fused laminate, Medium Density Fiberboard, edge banding, moulding and laminate flooring. These products are found in countless public and private spaces worldwide.

Building on the success and lessons learned by developing their many manufacturing facilities, the Lexington site is the most state-of-the art facility operated by EGGER. The location also boasts a cutting-edge design center and showroom. Construction began in March 2018 and the facility was operational as of late 2020. The massive 238- acre site includes a reserve of more than 88 acres for planned future expansion.

The facility manufactures particleboard with thermally fused lamination (TFL) capabilities. The manufacturing cycle begins with sustainably-sourced wood chips and particles which are processed through many stages to produce raw particleboard, as well as TFL panels in a variety of colors, designs and finishes. This Americanmade product, primarily sourced within a 100-mile radius of the facility, is then shipped by rail to destinations throughout the United States, Canada, Mexico, and locations abroad such as Italy and Austria. “Lexington has the ability, at full capacity, to produce enough board to circle the equator every three years,” said Ken Brown, EGGER plant manager for logistics. The Lexington site represents more than a new manufacturing facility; it delivers investments in the state, county, and local economies, the creation of jobs and development of careers, and efficient use of the North Carolina freight rail network. The first phase of development invested approximately $500 million in infrastructure and will bring an estimated 400 jobs to Davidson County. When fully developed, EGGER will provide more than $700 million in capital investment.

Local and regional opportunities, however, are not limited to the immediate creation of jobs. EGGER partnered with Davidson-Davie Community College to develop a four-year apprenticeship program. The program offers on-site education and development opportunities toward mechanical and electrical related career paths. During this apprenticeship, participants enjoy a full-time wage, benefits, and free tuition while gaining real-world work experience. The intent is to invest in local talent who, in turn, have the potential to enjoy a career at the manufacturing facility in a skilled position. The rail industrial access arm of the FRRCSI program works to spur economic development in North Carolina through strategic connection of North Carolina-based industries to our robust freight rail network. Successful, rail projects such as the EGGER rail connection, embody the goals of the FRRCSI program.

The NCDOT was pleased to partner with EGGER Wood Products on the successful completion of this important rail connection.

























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