Sierra Pacific Industries Plans Upgrades to Its Eugene, OR, Sawmill

Sierra Pacific Industries will begin a multi-million-dollar upgrade to its sawmill in Eugene, Oregon, this summer, with construction expected to be completed by fall 2028, The Register-Guard reported (6-15-25). The project will be partially funded through a tax exemption being used for the first time in Lane County.

The company plans to invest $253 million in the upgrade. Representatives told the county that the existing sawmill includes three production lines housed in separate buildings, and the planned reconstruction will consolidate them under one roof. This is expected to improve efficiency, help the company remain competitive, and allow it to retain its workforce.

The upgrade will be supported through the Oregon Strategic Investment Program (SIP), which exempts businesses from paying property taxes for 15 years on capital investments such as new equipment. Under SIP rules, investments beyond the first $100 million are tax-exempt for 15 years. Sierra Pacific is expected to save about $7.9 million through the program.

In return for the exemption, Sierra Pacific has committed to maintaining its current workforce of 347 employees at the site throughout the SIP period. The company will also pay a “service fee” equal to 25% of its property tax savings to local non-education governments and provide Lane County with $535,000 for police and administration.