Associated Press - July 14, 2009 8:05 AM ET

BARNSTEAD, N.H. (AP) - A former lumber company that used to be the largest employer in Barnstead, N.H., is being turned into a wood pellet manufacturing plant that residents hope will be a bright light in a tough economy.

Lakes Region Pellets plans to start making pellets as early as next week.

Timco Lumber Co. once employed more than 130 direct employees who were all laid off in 2003 when the business went bankrupt, leaving the property like a ghost town for the past six years.

The pellet plant has hired 20 people so far and once it's in full operation, it anticipates 30 to 35 jobs created directly. Another 100 jobs will be created indirectly by outside loggers, truckers and other contractors.

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