Paper Excellence to Acquire Northern Resources
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Paper Excellence Canada Holdings Corp., Vancouver, B.C., Canada, this past week reached an agreement to acquire Northern Resources, the parent company of Northern Pulp Nova Scotia and Northern Timber, Abercrombie Point, Nova Scotia.
"The agreement is good news for the company's 230 employees, 400 timberlands contract employees, suppliers, and community and business partners as it strengthens the mill's economic position over the long-term," says Wayne Gosse, president and CFO, Northern Resources. "A strong demand for the mill's product globally presents a great opportunity for the mill to be part of a large international network of pulp mills and to diversify and expand its markets."
Paper Excellence operates three mills in Canada—Meadow Lake in Saskatchewan and Howe Sound and Mackenzie in British Columbia—and is in the process of acquiring the long closed Prince Albert mill in Saskatchewan. The Group currently employs more than 800 Canadians. The Northern Resources team will continue to operate the mill and land holdings under the Northern Pulp name. There are no job impacts as a result of the transaction.
Northern Pulp was sold by Neenah Paper three years ago amidst uncertainty about the mill's future as a result of very difficult business conditions in the forestry sector worldwide. Since then, Northern Pulp's workforce has improved efficiency and productivity and local management has worked closely with stakeholders to stabilize the business. A $1 million investment in R&D, the acquisition of 422,000 acres of forest land for active management, and a commitment to work with Pictou Landing First Nation on economic development have been instrumental in the mill's resurgence.
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