NO AGREEMENT ON PLAN TO OPEN PRINCE ALBERT PULP MILL

No agreement has been reached to reopen the Prince Albert pulp mill.  While talks continue, it is expected that Domtar will now take steps to dispose of some or all of its Saskatchewan assets.

“Since August 2006 we have worked with Domtar officials to develop a comprehensive plan to reopen the pulp mill and sawmills, and develop new forest products facilities in the Prince Albert area,” Minister responsible for the Forestry Secretariat Eldon Lautermilch said.  “Domtar has decided not to pursue these opportunities.  While we are clearly disappointed with this decision, we remain committed to our original objectives of reopened facilities and sustainable use of the Crown wood supply.”
 
The government remains willing to support the redevelopment of the mill and associated assets by providing support for value-added improvements, renewable energy production, agroforestry development and to facilitate an equity position for First Nations and other community groups.

“Although we are unhappy with Domtar’s decision, we respect it; we intend to work with Domtar to find a solution,” Lautermilch said.  “We have offered to jointly manage a sales process with the company in order to facilitate a timely sale.  At the same time, the Province will begin the process to seek expressions of interest for developments using the wood supply, should the Domtar facilities remain closed for two years and the timber becomes available for reallocation.”

Weyerhaeuser closed facilities associated with its Prince Albert Forest Management Agreement area in April 2006, putting 980 employees out of work.  In August 2006, Weyerhaeuser announced intentions to merge its fine paper division with Domtar.  The merger was finalized in March 2007.

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For more information, contact:

Kent Campbell
Forestry Secretariat
Regina
Phone: 306-787-7352
Email: kcampbell@cicorp.sk.ca