The Township of White River and Pic Mobert First Nation formerly announced their partnership this week to expand an existing mill cogeneration power unit and produce wood pellets at the former Domtar site in White River, Ontario.

Together with an unnamed private investor, the partnership, named White River Forest Products, have purchased the White River sawmill and assets from Domtar.

The municipality of White River has not put any money into the operation, but White River Mayor Angelo Bazzoni said it might.

The plan for the mill hinges on being able to nearly triple the output of the operation‘s cogen, currently set at only 7.5 megawatts.

White River Forest Products has asked the Ministry of Energy for an increase in allowable output, but have yet to be successful.

Though the new operation would start with an expanded cogen and wood-pellet operation, the long-term plan includes getting back into the lumber market.

Earlier this spring, about 70 former Domtar workers who remain in the area voted in favour of loaning the new company money to help it get started. The sawmill itself likely needs about $20 million in upgrades.

Before the mill was closed in July 2007, it employed up to 230 people in the mill and woodlands division combined.

Source:
Town, band buy Domtar plant (Chronicle Journal)