Resolute’s Fort Frances Paper Mill Set to Restart in 2019

SEATTLE (Scrap Monster):  The shuttered pulp and paper mill in Fort Frances, northwestern Ontario, previously operated by Resolute Forest Products will likely get a new life. The Repap Resources Group- private investment firm in partnership with 4Front Capital Partners has already expressed interests in the mill assets. At the same time, several demolition companies have reportedly expressed interest in acquiring the mill.

According to Unifor, the union which represents workers in Fort Frances, it has already been involved in discussions with Repap Resources Group. The union is said to have proposed a rough sketch of the long-term collective agreement, which will be finalized upon completion of sale. Stephen Boon, national representative, Unifor noted that the buyer has expressed intentions to restart the facility as early as 2019. Estimates indicate that the mill reopening will lead to creation of around 263 direct jobs, in addition to several hundreds of indirect jobs in the region, Boon added.

Resolute had decided to permanently close the previously-idled mill in May 2014, after a series of operational changes and employee lay-offs. Since then, Resolute has been keeping the mill in a “hot idle” state in order to ensure protection of infrastructure. For this, the company has spent over $30 million.

The proposed restart of the mill depends on the outcome of negotiations with the provincial authorities on a possible wood supply agreement.