Brown-Forman Corp. is buying a southern Indiana lumber mill that will turn out wooden segments for its bourbon barrels.

The Louisville-based maker of whiskey and other spirits will spend $12 million to buy and expand that Owen County mill.

The 15,000-square-foot mill in Spencer about 50 miles southwest of Indianapolis will be expanded and 50 people hired to run it, The Indianapolis Star reports.

The Indiana Economic Development Corp. offered Brown-Forman as much as $350,000 in state tax credits if it creates the promised jobs. The mill will make wooden staves and end pieces for the company’s bourbon barrels.

Brown-Forman was founded in 1870 and has a long history of barrel-making. It sells 25 wine and spirit brands, including Jack Daniel’s and Southern Comfort.