Asia Pulp and Paper Co., through its European subsidiary, Paper Excellence, is buying Domtar Corp.'s mothballed pulp mill in Prince Albert and will invest $200 million in order to convert it to production of specialty dissolving pulp for rayon manufacturers.
The mill produced conventional pulp and also paper when it was shut down in 2006 with the loss of several hundred jobs because of high costs. The paper machine was dismantled in 2008.
Paper Excellence will invest $200 million to convert the pulp mill to dissolving pulp, which is in strong demand throughout Asia because of the soaring cost of cotton. The project will provide 200 permanent jobs when in production.
The Province of Saskatchewan will allocate fibre, buy surplus power and make a $1 million grant toward training.
Asia Pulp and Paper is one of the world's biggest forest products groups and has been investing in Europe and North America to ensure long-term pulp supplies.
Members of the Prince Albert business community expressed delight at news of the sale.
"I was ecstatic, personally," Bergen Price, who is the CEO of the Prince Albert and District Chamber of Commerce, told a reporter from the local newspaper. "Obviously, with 200 more jobs at a minimum created, and the trickle-down effect that it has with an operation such as that coming back into town, I think it's absolutely huge for Prince Albert."
from Western Investor, April 2011
