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Negotiations continue for purchase of Tembec Pine Falls mill

Tembec recently confirmed that talks continue with an employee buyout group concerning its Pine Falls, Man., n…

Tembec recently confirmed that talks continue with an employee buyout group concerning its Pine Falls, Man., newsprint mill. A company representative also told the Montreal Gazette that Tembec is not ready to absorb the cost to keep the mill heated this winter, and will start selling machinery and equipment if a deal is not reached soon.
John Valley, executive vice-president of business development at Montreal-based Tembec Inc., said in a Gazette report Aug. 19, that a Manitoba buyout group is negotiating to buy the mill, and that Tembec is providing the group with information.
Tembec shut down the mill a year ago, citing low newsprint prices and declining demand.
The Gazette reports that the buyout group includes former union and management people and private investors. According to the paper, the Manitoba government has pledged a loan up to 35% of the purchase price.