TERRACE BAY – “Our government is thrilled that this investment will offer new life to the mill at Terrace Bay, the community and the region. This is a boost for long-term prosperity in Northwestern Ontario, one that will help lead the way for the transformation of the forest industry to the new bio-economy. At the same time, it will support jobs for the region,” enthused Minister of Natural Resources Michael Gravelle.
“The Terrace Bay Mill in Northwestern Ontario is returning to operation, supporting more than 1,900 jobs across the province. Aditya Birla Group has agreed to purchase the assets of the idled mill, subject to court approval, and plans to invest more than $250 million to convert the facility to dissolve wood pulp for rayon fibre,” according to a media statement from the Ontario government.
The investment would support more than 275 direct mill jobs, 335 woodland jobs and an estimated 1,300 indirect jobs province-wide.
Supporting a successful forestry sector is part of the McGuinty government’s plan to create jobs for Ontarians and strengthen the economy. A strong economy protects the services that mean most to families – health care and education.
Terrace Bay Pulp closed for three months in November 2011, and then entered receivership under Ernst & Young.
The Ontario Government was owed $24,166,666 when the mill entered the receivership.