Temple Lumber Company and U. S. Plywood Corporation co-sponsored a plywood plant built at the Diboll facility. The facility was to cover 110,000 square feet on a twenty to forty acre site. Capacity was projected at 100 million square feet annually. Twelve-inch logs could be handled by the high-speed lathes. It became operational in 1964. Three shifts were working the facility located on three and a half acres. Harry Mahoney became the new manager in March, 1965. Temple bought out U. S. Plywood's share of the operation in 1970.
The Diboll plant was a joint venture between Temple Industries, Inc., and United States Plywood Corporation of New York. Construction of the mill began in August 1963 and the first plywood produced was on June 26, 1964. To situate the plywood mill near the sawmill, more than one hundred houses were relocated.
Southern Lumberman noted in April 1965 that Kirby Lumber and Southern Pine Plywood, with annual capacities of 36 million and 80 million square feet, respectively, were the only two operating plywood plants in the state. Angelina Plywood Company at Keltys was building a sixty million square foot annual capacity plant and Gulf States Plywood was planning a plywood plant at Woodville.