Northern Pulp acquires Ligni Bel sawmill
August 3rd, 2012 | Posted in Mill Sales/Transfers | 1 comment »
Northern Pulp hopes to have solved its woodchip supply issue by acquiring the Ligni Bel sawmill in Scotsburn, Nova Scotia.
The Ligni Bel sawmill closed last November after its wood supply was eliminated when NewPage Port Hawkesbury was idled.
Northern Pulp’s parent company, Northern Resources, acquired $5 million in secured debt of the company in order to take over the mill.
“Our plan is to, through a process, secure the assets of the Ligni Bel, and following the securement of the assets, we intend to start the sawmill up, creating probably seventy or so jobs in the Scotsburn area,” says Bob Bagdon of Northern Resources.
The Northern Pulp mill uses wood chips to produce its bleached kraft pulp. Northern Pulp lost their supplier of woodchips when Hodgson’s Chipping ceased operations this spring.
The acquisition still requires court approval, but the company is hopeful they can restart the sawmill by this fall.
Read more:
Plan in the works to re-open N.S. sawmill (CTV News)
Scotsburn sawmill could soon be reopened (Truro Daily News)
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Why can they get a chip supply from all the suppliers of Bowater. It ain’t like they have alot of customers.