Pine Falls paper mill may be closed for good

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This article was published 23/08/2010 (5690 days ago), so information in it may no longer be current.

The Pine Falls paper mill is likely closed for good.

A buyout group looking at buying the facility has decided not to pursue an offer with the mill’s owner, Montreal-based Tembec.

The decision was made over the weekend.

“It’s a blow to the community,” said Henry Dube, who co-chaired the employee buyout committee. He said the group felt it could not produce a viable business plan for running the mill.

The province, which had promised to provide loans for up to 35 per cent of the cost of restarting the papermill, issued a press release this afternoon saying it will continue to help the region explore new economic opportunities in the wake of the decision.

“This is a difficult time for the former Tembec workers, their families and the buyout group who have worked so long to preserve the mill and the jobs that are critical to the town,” Labour and Immigration Minister Jennifer Howard said in a statement.

Last December, the province committed $1 million to help the region develop economic alternatives.

The buyout-group has determined that although the existing newsprint mill is not a viable business for them, the region still contains a valuable forest resource.

“We will consult with the public, First Nations, municipalities and all stakeholders for input into the future of the forest resource in order to maximize the benefit in the region,” Howard said. “We will also explore opportunities for the region such as tourism development.”