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West Fraser Announces $70.25 Million Expansion In McDavid Following Tax Break Approval
May 9, 2026
The day after the Escambia County Commission approved a tax break for the West Fraser sawmill in McDavid, the company announced a $70.25 million expansion that will create 30 new jobs.
Thursday night, the commission approved an Economic Development Ad Valorem Tax Exemption (EDATE) for the company, giving the company a 70% ad valorem tax exemption over a five-year period. An EDATE under Florida law provides that new and expanding businesses may be exempted from ad valorem taxation. During the current fiscal year, the exemption will be worth $590,969.
The $70 million investment is planned for nearly $28 million in year one, $20.5 million in year two, $13.4 million in year three, and $8.3 million in year four, and the production jobs will have an average annual salary of $49,920 with a gross annual payroll of $10.7 million, according to paperwork West Fraser filed with Escambia County.
Less than 12 hours after the tax break approval, the FloridaWest Economic Development Alliance announced that West Fraser has invested $70.25 million in capital expenditures to expand its existing sawmill operation on Champion Drive, off Highway 29, McDavid. FloridaWest said the expansion will create 30 new “family-supporting jobs.”
“Escambia County offers strong, attractive business fundamentals for long‑term investment such as our McDavid lumber mill expansion,” said Chuck Watkins, vice president, Capital and Technology, West Fraser. “The area’s robust business climate, ample and sustainable fibre basket and skilled local workforce make it an excellent expansion opportunity for our McDavid lumber mill. Combined with quality community amenities and a long history in forestry, the region provides both the resources we need and a great place for our employees to live and work.”
FloridaWest said the company’s McDavid facility has been a cornerstone employer in the region and a key part of the community’s industrial base. The expansion at West Fraser’s McDavid sawmill includes significant capital investment in new construction and equipment upgrades designed to enhance the facility’s production capacity and operational efficiency. The project is expected to generate substantial economic activity across Escambia County, supporting local suppliers, contractors, and service providers.
“West Fraser has been a valued employer in northern Escambia County, and this expansion builds on their commitment,” said Escambia County District 5 Commissioner Steven Barry. “Creating 30 new jobs with competitive wages in a more rural area of our community demonstrates our economic development efforts are serving the entire county, and I am proud to support it.”
“West Fraser’s continued investment in Escambia County sends a clear message that our community is competitive on the global stage,” said Chris Platé, chief executive officer of FloridaWest Economic Development Alliance. “Retaining and growing established employers is a cornerstone of our economic development strategy, and West Fraser’s decision to expand here is a powerful testament to the strength of our region’s value proposition for the forest products industry.”
Comments
9 Responses to “West Fraser Announces $70.25 Million Expansion In McDavid Following Tax Break Approval”
Note: tax break = money saved
REGARDING:
“businesses aren’t taxed enough”
How do you determine how much is enough? too much? too little?
Most people think: “They just need to pay more,” without having any way of determining how much more and why.
And think about the fact that a company thinks enough of the potential of the area to meet the demand for a product that our area can provide that they are willing to invest that much money in an expansion.
Don’t you understand that they will be advocating for maintaining our forest acreage to supply this expansion?
They will be advocating to preserve the rural, forest biome that led them to commit to this investment.
This type of agreement helps maintain the very things we hold dear about North Escambia — open space, timber, agriculture, and industry. It’s a win for us.
@derek businesses aren’t taxed enough
I am glad the county allowed a tax break for this company! As a whole, businesses are overtaxed! Any property taxes not accessed will be multiplied by 100 times because new employees build homes, pay state and county taxes and even better they support small businesses and restaurants. This is the fundamental difference between political parties in this country! Good Work Escambia County!
@Nick…Fire Protection is a non-ad valorem assessment and is not covered. West Fraser paid $11,996,034 on their 2025 Tax Collector bill for fire protection.
Very fuzzy math on this one for some 20’s range per hour jobs skilled labor. I applied for job here awhile ago. We get charged premium price for everything so premium pay is nice too. County is losing on this one.
The county says this $590,969 tax break will help bring 30 jobs to the area, but it also means West Fraser will pay much less in property taxes for several years.That tax money would normally help pay for things like roads, fire departments, emergency services, and other local infrastructure. Instead of collecting the full amount from a large corporation, the county is choosing to reduce that revenue and hope the expansion benefits the area later on. This can hurt local communities because regular residents and small businesses still have to pay their full taxes while county services may receive less funding in the meantime.
That’s a lot of taxpayer’s dollars going towards 30 jobs that pay about $24 per hour.