Neenah Paper and Buchanan Forest Products tentatively agreed to a transfer of the Neenah Paper Terrace Bay pulp mil…
Neenah Paper and Buchanan Forest Products tentatively agreed to a transfer of the Neenah Paper Terrace Bay pulp mill and woodlands operations.
The transfer remains subject to several conditions, including negotiations with mill and woodlands employees, all of which must be wrapped up by June 1, 2006 in order for the transaction to go through.
“We are very pleased with this agreement and feel it is clearly in the best interest of our employees, shareholders, customers and local communities, as well as a positive development for the forest products industry in northern Ontario,” said Sean Erwin, chairman and CEO of Neenah Paper.
“Following the mill shutdown in February, we had recently reached the difficult decision to permanently close the mill and woodlands. Instead, as part of this agreement, we will provide funds to Buchanan that would have been required to close the facilities, and which can now be used to help make the operation successful.”
Ken Buchanan, chairman of Buchanan Forest Products said, “the acquisition should improve the present state of the forest industry in northern and northwestern Ontario and remove the uncertainty that currently hangs over the communities connected with the forest industry.”
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