DUNGANNON — Mountain Top Timber Products will invest $3.76 million in a long-abandoned industrial building in Dungannon to expand the company’s woodchipping operations and add a sawmill and dry kiln capacity.

Over the next three years, the company expects to create 50 jobs and will commit to purchase more than $14 million of Virginia-grown timber from area loggers and forestland owners, Gov. Ralph Northam announced Friday.

“My administration is committed to partnering with our local governments and economic development allies to leverage local resources and bring prosperity to all corners of the commonwealth,” he said.

“That’s why this announcement is not only a great win for the forestry industry and for Scott County, but for all Virginia as we continue to create opportunities for all Virginians.”

Neal Stidham, managing member of the company, said Mountain Top is a “locally grown company, and we are excited about the opportunity to revive the facility in the Dungannon area. These will be good forestry related jobs for this area. We appreciate the Commonwealth, the region, and Scott County in their partnership with us on this project.”

The governor approved a $260,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund, which Scott County will match with local funds, to assist the project.

The Virginia Department of Agriculture and Consumer Services, which administers the fund, worked with Scott County and the Virginia Coalfield Economic Development Authority to secure the project for Virginia.

The coalfield authority’s board of directors approved a $1 million loan to the Scott County Economic Development Authority to help with the project.