The governments of New Brunswick and Canada are providing more than $17 million to Arbec Forest Products to restart the Miramichi OSB mill that was closed 5 years ago by Weyerhaeuser.

Provincial Funding

$15.3 million will be coming from the province of New Brunswick, including:

• $1.5 million payroll rebate
• $5.6 million term loan
• $1.2 million contribution for capital expenditures and start-up costs
• $7-million loan guarantee

Federal Funding

The $2 million from the federal government will being called a “repayable contribution” for necessary upgrades.

Plans for the Mill

Arbec Forest Products bought the Miramichi mill from Weyerhaeuser last month for $31 million. The company is undertaking a repair program, mill maintenance and equipment startup. Arbec plans to have the mill operational this fall, with a goal of reaching full operation by the spring of 2013. At least 100 jobs will return to the mill and the economically depressed region of the Miramichi in northern New Brunswick.

Under the Crown wood allocation agreement, Arbec Forest Products Inc. can annually harvest 277,802 cubic metres of mixed hardwood pulpwood and softwood pulpwood, which is more Crown wood than Weyerhaeuser had when the mill closed.

Once fully operational, at least half of the mill’s wood supply will come from private woodlots.

Sources:
Company receives financial assistance and wood allocation to reopen Miramichi mill (New Brunswick)
Miramichi mill to re-open -Will create more than 100 jobs (CBC)
Feds and New Brunswick ante up $17 million to help reopen shuttered mill (Canadian Business)