Gaspesia to find home away from home
November 21, 2005 By Pulp & Paper Canada
The inoperative Gaspesia paper mill may soon find a new home, miles away from its current resting quarters in Quebe…
The inoperative Gaspesia paper mill may soon find a new home, miles away from its current resting quarters in Quebec’s Gasp region, the Gazette has reported. Chinese firms are looking to buy the operation, and then ship it home, the mayor of Chandler, Claude Cyr, has confirmed.
According to the Gazette, the names of the firms have not been released, but they reportedly intend to buy all the equipment associated with the mill. However, Cyr is trying to convince the purchasers to reopen the mill instead of relocating it.According to the Edmonton Journal, Cyr will be travelling to several countries, of which China is one, to try and convince paper company executives to convert the former newsprint mill into a high-tech coated paper operation.
“In the first place, we want to show them (the interested Chinese companies) that it will be more profitable if they come here. There will be no fire sale,” The Journal reported Cyr as saying. “If it’s impossible to find a taker to use the factory here, then we’ll sell the equipment at the best price, taking our time to analyze all the offers.”
The Journal further reported that if the mill is sold, Chandler would pocket 85% of the first $15 million and 25% of anything over $30 million. Creditors would receive all the funds between $15 and $30 million.
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