Repap Resources Submits Bid for Resolute's Idled Fort Frances Paper Mill

SEATTLE (Scrap Monster): The private investment group Repap Resources has submitted bid for the shuttered pulp and paper mill in Fort Frances, Ontario. The bid, if successful, would lead to restart of the mill which was idled by Resolute Forest Products in 2014, following a series of operational changes and employee lay-offs. The offer was submitted just ahead of the March 15 deadline.

According to sources, the offer submitted by Repap Resources contains proposals offering harvested saw logs to Resolute’s Ignace and Atikokan sawmills in exchange for wood chips. Additionally, it also proposes to purchase raw pulp from Resolute’s Thunder Bay mill. Further, it promises restoration of around 700 jobs in mill and forestry operations.

Resolute’s spokesperson confirmed receipt of the bid from Repap Resources. The offer is being reviewed and there is no specific deadline before the company for announcing its final decision on the potential sale of the mill, he added. Meantime, Sean Twomey, President, Repap Resources noted that the financially attractive bid put forward by the company is sure to offer long-term operational benefits to Resolute’s sawmills. The proposed restart of the mill is contingent to outcome of negotiations with provincial authorities on securing sufficient access to wood supply in the region.

Earlier, Expera- a U.S. specialty paper business had expressed strong interest in buying the mill, but the talks broke off on issues related to acquisition of fibre at a reasonable cost.