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A group of local investors, Superior Fine Papers Inc., announced Wednesday they have purchased the assets of the mothballed north-side mill. The price was not disclosed. “After months of hard work . . . the mill has been saved,” Dan Sinclair, board member and interim vice-president of Superior Fine Papers, said in an email to The Chronicle-Journal from Fort Myers, Fla. Superior Fine Papers Inc. asked Superior Court last Friday to adjourn a motion by court-ordered receiver Deloitte Touche. The receiver was seeking approval to sell the mill to a recycling company that intended to scrap it, according to an affidavit filed with the court. The court gave the group until Wednesday to firm up a purchase. Sinclair said the investors include individuals who were previously silent cash investors in TBFP, as well as contractors who were owed money when TBFP failed to pay its bills. “Local investors will ensure local control, with a focus on the needs of the community of Thunder Bay, rather than some distant headquarters,” Sinclair said. He said the group‘s intention in saving the mill is to create jobs and have a positive effect on the economy of Thunder Bay. Sinclair said an experienced sales team is in place and has been securing sales. He said the deal was sealed through the effots of individuals including lawyer Tony Potestio, Communications, Energy and Paperworkers union officials, Mayor Lynn Peterson, Coun. Andrew Foulds, MP Bruce Hyer (L-Thunder Bay-Superior North) and Northern Development and Mines Minister Michael Gravelle. Word of the purchase emerged late Wednesday when CEP lawyer Jesse Nyman told union national rep Marvin Pupeza that Superior Fine Papers would be granted possession of the mill today. Pupeza said if Superior Fine Papers takes over the mill, the next major step will be to find the $35 million needed to start up. “We‘ll have to wait and see,” he said. “The mill has the ability to make money,” Pupeza said. “They have a collective agreement in place and the equipment is there, so all they have to do is find the $35 million.” Pupeza said once the money is in place, paper machine No. 8 will be started and about 180 employees will be on the job. With all three paper machines running, a workforce of about 300 would be employed at the mill. Gravelle was ecstatic on hearing the mill has been sold. “That‘s just great news,” he said. “I am very, very pleased to hear that. That‘s what we were all hoping for. “I look forward to working with the new ownership to see how we can help them move forward,” he said. The former Cascades mill was reactivated early last year as TBFP, bolstered by investments from the private and public sector worth about $45 million, including $16 million in grants and loan guarantees from the province. A glut of inventory and a lack of customers forced the mill to close on July 11. Top of Page |
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September 2, 2010, 8:22 am |