Tolko Industries Ltd., Vernon, B.C., Canada, reports that Canadian Kraft Paper Industries Ltd., a company affiliated with American Industrial Acquisition Corp., New York, N.Y., USA, has purchased its Manitoba Kraft paper mill and sawmill in The Pas, Manitoba, Canada.

As part of the agreement, all current Manitoba employees will transition to Canadian Kraft Paper Industries, and maintain operations going forward. Over the coming months, Tolko will work with Canadian Kraft Paper Industries to support a successful transition.

Brad Thorlakson, president and CEO of Tolko Industries, said that "we are pleased negotiations with Canadian Kraft Paper Industries Limited have reached a successful conclusion. I want to thank the employees at the Manitoba operation for their dedication and patience throughout this process, and to the retirees for their support of the sale." 

Thorlakson added that "we also want to acknowledge the critical role that the Swampy Cree Tribal Council played in enabling this sale, and recognize the Manitoba Government, the Town of the Pas, and local unions for their cooperation and work towards making this sale happen."