Abitibi-Consolidated has sold its privately owned timberlands near Thunder Bay, ON. North Star Forestry, a subsidia…
Abitibi-Consolidated has sold its privately owned timberlands near Thunder Bay, ON. North Star Forestry, a subsidiary of Wagner Forest Management, now owns the approximate 196,000 hectares of land, which it bought for $55 million.
Abitibi plans to use this money to pay off some of its debt and for other ‘general corporate purposes.’
Despite Abitibi’s effort to sell its Fort William mill along with the timberlands, U.S.-based Wagner bought only the land. The future of the facility remains uncertain and the company has said it ‘remains subject to the ongoing in-depth operational review.’ However, the company has also confirmed the objective is to ‘improve the mill’s performance and cost structure, so as to ensure a long-term cost competitive operation.’
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