Only one day after the intended buyer of a closed pulp and paper mill in Nova Scotia announced the deal was off, a new financial agreement with the provincial government and utilities regulator has put the sale of the mill back on track.
Pacific West Commercial Corp.’s Ron Stern announced on Saturday, Sept. 22, that an agreement had been reached which would allow the sale of the shuttered mill to proceed.
“I am very pleased – for the employees of the mill, members of the community, and the mill's many suppliers and customers – to be able to announce that the issues that yesterday prevented the mill from restarting have been overcome.
“Starting next week, we intend to call all employees back to work,” Stern said.
Pacific West plans to take ownership Sept. 28, and for production to begin in the first few days of October. Stern says the mill is now taking orders.
“I really want Nova Scotians to know how hard their government leaders - both provincially and municipally - have worked to ensure there is a future for this world class mill and its people," said Stern.
Nova Scotia premier Darrell Dexter said the new arrangement will significantly increase the annual share of profits paid by Pacific West to the province and it will ensure a significant amount of the tax savings generated by Pacific West in other provinces will be shared with Nova Scotia.
In addition to that, as a result of the Canada Revenue Agency ruling earlier this month, the province will receive millions in additional revenue.