Deal to buy Pine Falls paper mill is dead
The group of employees that was interested in buying the idled Pine Falls, Manitoba paper mill, from Tembec, have decided not to proceed with an offer.
The province of Manitoba announced today that they will continue to work with the people in the Powerview-Pine Falls region to explore new economic possibilities.
“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,” Manitoba’s Labour and Immigration Minister Jennifer Howard said. “I commend the extensive efforts and diligence undertaken by the buyout group as it explored the financial viability of purchasing the mill from Tembec.”
Although the group decided that purchasing and operating the mill would not be a viable business, they did say that there is valuable in the forest resources in the region.
Tembec idled this mill last September after locking out about 250 workers during labour negotiations. Tembec said the mill would be permanently closed if a buyer is not found.
J.P. Bradette, a former Tembec executive, was also interested in buying the mill. Bradette said he would be able to keep 200 people employed, but he did not gain the support of the United Steelworkers union who said his plan called for deep wage cuts and layoffs.
Province working with Powerview-Pine FAlls to develop new economic initiatives – Buyout Group Commended for Due Diligence in Exploring Possible Purchase of Tembec Paper Mill: Howard (Province of Manitoba)
Pine Falls mill bid dead – Manitoba government pledges ongoing support to help former employees (CBC)
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