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Town, band buy Domtar plant
CARL CLUTCHEY
06/23/2009

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An optimistic plan to resurrect White River‘s dormant lumber mill is being driven by the two communities that stand to gain – or lose – the most.

The Township of White River and Pic Mobert First Nation formally announced Monday their partnership in the plan to eventually expand an existing mill cogeneration power unit and produce wood pellets at the former Domtar site.

In a joint news release, the communities said they had “purchased the White River sawmill and assets from Domtar.”

No financial information was released.

Domtar did not contribute to the news release, but a regional company spokeswoman confirmed later Monday “that the transaction has closed and we wish both communities well.”

The name of the new operation – which is to include an undisclosed private investor – is to be White River Forest Products.

White River Mayor Angelo Bazzoni said the municipality is not currently putting any money into the operation, “but it might.”

Bazzoni said the plan continues to hinge on being able to nearly triple the output of the operation‘s cogen, currently set at only 7.5 megawatts.

He and other officials have been asking the Ministry of Energy to allow an increase in output, but have yet to be successful on that front.

Though the new operation would start with an expanded cogen and wood-pellet operation, the long-term plan includes getting back into the lumber market, said Bazzoni.

Earlier this spring, about 70 former Domtar workers who remain in the area voted in favour of loaning the new company money to help it get started.

The saw-milling part of the plant likely needs about $20 million in upgrades, said Bazzoni.

Before the mill was closed in July 2007, it employed up to 230 people in the mill and woodlands division combined.
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