The province of Nova Scotia is contributing to the reopening of Ligni Bel, a lumber mill in Scotsburn, Pictou County.

A $3 million loan guarantee, through the Industrial Expansion Fund, will help the company secure a $3 million operating line of credit from its commercial lenders. The line of credit will assist with the reopening of the mill and the restoration of jobs.

"Ligni Bel has worked with its business partners and the province to develop a viable plan to reopen the mill and keep it operating, said Percy Paris, Minister of Economic and Rural Development. "This will restore valuable jobs and contribute to the local economy."

The Ligni Bel mill, which employed up to 75 people, shut down late last year.

"We are pleased with this provincial support, which will help us bring our people back to work and generate spinoff benefits to the community," said John White, Ligni Bel's vice president and general manager.

The Industrial Expansion Fund has invested almost $17 million in the forestry industry during the past few years. Last year, the province committed $2.52 million over three years through the Community Development Trust Fund. This assistance will support the industry with an action plan as it deals with changes in global market conditions.

As a result of the worldwide economic and credit crisis, companies in Nova Scotia, like all of North America are having trouble accessing capital from banks. Through the Industrial Expansion Fund, the province is able to support businesses to be more competitive.

Source: Nova Scotia Government