Southland Paper Mills, Inc., expanded the company's operations to Harris County with the selection of Sheldon as the site for a new ten million dollar paper mill located adjacent to the San Jacinto River. Building would be constructed in two phases, the first being the construction of a groundwood pulp mill and a paper machine. The second phase would construct a kraft pulp mill. First production of newsprint was planned January, 1967. The mill would employ 200 people. A main factor in the mill's selection of its location was that it gave Southland access to water transportation of its products. This plant, as did the Southland plant at Lufkin (Herty), came under the control of Champion.