Terrace Bay Pulp will not re-open as scheduled; Mill is for sale
January 16th, 2012 | Posted in Mill Sales/Transfers | 4 comments ยป
Terrace Bay Pulp will not be restarting operations as scheduled on March 1st.
And now the mill is for sale.
It is believed that the current owner, The Buchanan Group, headed by company founder Ken Buchanan Sr., has lost its financial backer. Terrace Bay Pulp exited creditor protection in the fall of 2010 with the help of $30 million in capital from Toronto lender Callidus Capital Corporation, and a $25 million loan from the province of Ontario.
The community of Terrace Bay, Ontario sensed there was bad news coming about their mill. Union officials said the company unexpectedly paid out about $2 million in vacation pay last month.
The mill announced it was taking 3 months of downtime starting on November 30, 2011.
In 2006 it appeared the mill was about to be torn down, but The Buchanan Group made a deal to transfer to assets of the mill to them from Neenah Paper for $18 million.
Read more:
Northwest pulp mill for sale (The Chronicle Journal)
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I’m sure that someone will step in. It can be a major producer with the right organisation backing it. Bucky never was good at anything he ever ran. Took him a few years to notice that there is a difference between a sawmill and a pulp mill. He has screwed over too many workers, companies, contractors, and governments-federal, provincial, and municipal. Time to bow out-and not gracefully-at that.
I hope someone will step in. If it was not for Bucky this place would have been torn down and gone for good six years ago. No one ever thought that he could run a pulp mill, but they all gave it their best shot. The markets and the economy however have not been kind. The last thing we need is some multi-national coming in. How soon we forget. Thanks for giving it a honest shot Bucky.
I just hope it is not 19 Months from now that the mill starts up again.
There is too much to say here. The pulp mill in Terrace Bay is as hopeless as their management team. In Terrace Bay, they believe no one needs engineering degrees in management when in fact, ALL management MUST HAVE AT LEAST A PROCESS ENGINEERING DEGREE for the pulp mill to operate SAFELY AND PRODUCTIVELY ! Terrace Bay never learned that their “good old boys club” they pick from the union for their management is not only idiotic, but extremely dangerous as well ! Its far too late for Terrace Bay to turn this operation around now. When hill billy millionaires like Buchannon are trying to run a pulp mill, all is lost .The pulp mill in Terrace Bay should be scrapped as they have proven beyond any doubt it cannot be operated safely or productively anymore.