Stella-Jones to acquire Boatright by end of May

Published 4:08 pm Wednesday, May 14, 2014

Canadian company Stella-Jones plans to acquire the assets of Boatright Railroad Products, with railroad tie treatment facilities in Clanton and Montevallo, by the end of May.

Stella-Jones Corporation is a U.S.-based company out of Pittsburgh, Pa., wholly owned by Stella-Jones Inc., based in Montreal, Quebec.

Boatright sells and distributes creosote and borate-treated crossties along with switch ties, tie plugs and bridge timbers to railroad operators.

In March, Stella-Jones Inc. announced the company had entered into a non-binding letter of intent to buy divisions from Boatright.

Senior Vice President of Engineering and Operations for Stella-Jones Doug Fox said Wednesday that Stella-Jones purchased the facilities to assist in meeting current demand/capacity constraints in their existing facilities, allowing them to utilize excess capacity at the Montevallo and Clanton facilities.

“Obviously, we are vested in making these facilities grow and in doing so, meet and exceed all regulatory requirements,” Fox said. “We will be investing significant capital to upgrade and expand the facilities from their current footprint over the next two years.”

Fox said as far as employees, the company plans to make job offers to the current employees on the day Stella-Jones takes over the facility.

“Based on their passing drug test results, they will be offered equal or higher paying positions that they currently enjoy,” Fox said. “There will be adjustments to some staff levels initially until we upgrade some of the facilities, but our plans are to increase both the production, number of shifts and number of employees overall from the current staff levels. We certainly see the staff at the Clanton location doubling in the future as production increases.”

The Montevallo and Clanton facilities employ roughly 150 individuals altogether.

Stella-Jones Inc. produces and markets pressure treated wood products.

Stella-Jones Inc. supplies North America’s railroad operators with railway ties and timbers, and the continent’s electrical utilities and telecommunication companies with utility poles.

Stella-Jones also provides residential lumber to retailers and wholesalers for outdoor applications, as well as industrial products for construction and marine applications.

The 400,000-square-feet facility is located on 100 acres at the Chilton County Industrial Park, north of Clanton.

“As far as Stella-Jones, we like to see ourselves as family-oriented and very supportive of the communities we are in,” Fox said. “Most of our 29 treating plants are in rural communities and we endeavor to support community organizations, especially those that work with us including first responders, local fire and police, economic development, local education and training and of course our military employees,” Fox said.

According to the company’s website, facilities in the United States are located in Arlington, Wash.; Bangor, Wis.; Spencer, W.Va.; Russellville, Ark.; Alexandria, La.; Fulton, Ky.; Winslow, Ind.; Warrior, Ala.; Goshen, Va. and McAlisterville and Dubois, Pa.