Palouse Fiber Secures $9 Million to Redevelop Former Columbia Pulp Sites in Southeast Washington
Palouse Fiber, LLC has secured a $9 million investment to redevelop former Columbia Pulp industrial properties in Garfield and Columbia Counties, positioning the company to build a scalable, fiber-based manufacturing operation in rural Southeast Washington while creating dozens of jobs in communities that lost significant industrial activity in recent years.
The funding package combines state grants administered through the Washington State Department of Commerce with private capital contributed by the company. State support includes approximately
The investment targets two facilities in the region. The Pomeroy location, in Garfield County, will function as a circular manufacturing hub. The operation is designed to process a range of feedstocks — including recycled textiles, agricultural residues, cardboard, and kelp biomass — and convert them into fiber-based materials and biodegradable products. The approach is intended to divert materials from landfills while generating new economic value for regional industries.32,000 from the Industrial Symbiosis Grant Program, directed toward a rural industrial circularity hub in Pomeroy, and more than .8 million from the Clean Energy Fund allocated for solar infrastructure and molded fiber equipment at the Lyons Ferry site in Columbia County.
Two Sites, One Manufacturing Platform
The investment targets two facilities in the region. The Pomeroy location, in Garfield County, will function as a circular manufacturing hub. The operation is designed to process a range of feedstocks — including recycled textiles, agricultural residues, cardboard, and kelp biomass — and convert them into fiber-based materials and biodegradable products. The approach is intended to divert materials from landfills while generating new economic value for regional industries.
At the Lyons Ferry site near Starbuck in Columbia County, Palouse Fiber plans to establish a molded fiber manufacturing facility capable of producing compostable packaging products meant to replace single-use petroleum-based plastics. A solar energy system at that location is expected to generate roughly 1,000 megawatt-hours annually, helping to power low-carbon production operations on site.
Together, the two facilities are designed to form a multi-feedstock processing system. Palouse Fiber acquired the former Columbia Pulp properties in 2023, and this investment marks the company’s most significant step yet toward bringing those dormant industrial sites back into productive use.
Palouse Fiber CEO Kyler Lovgren emphasized the economic dimension of the project. “This is about bringing industrial capacity and jobs back to Southeast Washington,” Lovgren said. “We are taking existing infrastructure and turning it into something modern, scalable, and sustainable.”
Jobs and Construction Timeline
The projects are expected to support approximately 30 construction jobs during the build-out phase, with 18 full-time positions created once operations are up and running. Construction and commissioning are projected to be completed within 12 to 15 months, putting an operational target in the range of mid-to-late 2027.
For rural Garfield County — one of the least populous counties in Washington State — the prospect of new permanent manufacturing employment carries meaningful weight. Port of Garfield Manager Tina Keller pointed to the longer-term significance of the project. “This development brings jobs, innovation, and renewed industrial activity to the Port of Garfield,” Keller said, noting the importance of investing in rural infrastructure for long-term regional growth.
The Palouse region, which straddles the Washington-Idaho border and is known for its agricultural production — particularly wheat and legumes — has faced ongoing pressure to diversify its economic base beyond farming and higher education. Projects like the Palouse Fiber redevelopment represent the kind of rural industrial investment that local officials and economic development advocates in both states have sought to attract.
Broader Regional Significance
The company’s model, which combines material recovery, domestic manufacturing, and on-site renewable energy generation, fits within a broader push in rural Washington and Idaho communities to attract industries that can utilize agricultural byproducts and other regional resources as raw materials.
For Latah County and the broader Palouse, developments across the state line in Garfield and Columbia Counties have direct relevance. Supply chain relationships, shared labor markets, and transportation corridors along the Snake River system connect Eastern Washington and North-Central Idaho communities economically. New manufacturing capacity in Pomeroy and Starbuck could create downstream opportunities for agricultural producers and logistics operations on the Idaho side of the border.
Palouse Fiber describes itself as a Washington-based company focused on developing sustainable fiber-based alternatives to conventional plastics and advancing circular manufacturing systems.
What Comes Next
Construction at both the Pomeroy and Lyons Ferry sites is expected to begin in the near term, with a completion window of 12 to 15 months. Hiring for the 18 full-time operational positions would follow commissioning. Local and regional officials will likely monitor the project closely as a potential model for rural industrial revitalization across the Palouse. For updates on economic development affecting Latah County and the broader region, visit Idaho News and the Idaho News Network.