The Sawmill is a Production building in Tropico 2: Pirate Cove that produces lumber out of wood hauled from Timber Camps. Lumber forms the basic building material and is used in the construction of nearly all buildings, as well as ships, making this one of the most important buildings in Tropico 2.
Transport of wood into the Sawmill is through the larger "hut" at one end of the building. To maximize efficiency the Sawmill should be rotated so that this end faces the Timber Camp.
Building an additional sawmill early on can really boost lumber production as a timber camp generally produces more wood than one Sawmill can handle.