Duane Hicks
The kraft mill here could have a buyer.
Municipal representatives met yesterday with Wisconsin-based Expera Specialty Solutions, which reportedly has signed a letter of intent with Resolute Forest Products.
“After months of consultations pertaining to a potential repositioning of the local pulp mill, I was contacted by a prospective buyer to arrange a meeting with council and area municipalities,” Mayor Roy Avis told the Times this morning.
“[Yesterday], we met with senior officials of the new company and were excited to learn of a letter of intent that was signed by the company with Resolute,” he added.
Mayor Avis, who has been working diligently to get such a deal in place for the past two years, stressed the success of this new venture is dependent upon “fibre, fuel, and folks.”
“The town will be actively advocating for a new Power Purchase Agreement [PPA] for the facility to be established by the provincial government,” he noted.
The PPA would be for the biomass boiler.
“We have been advised that this is a crucial element that needs to be addressed in order for the transaction to be completed,” said Mayor Avis.
The fibre part of the equation refers to the control of wood rights here.
Resolute currently manages and controls the wood allotment for the Crossroute Forest.
The kraft mill has been idled since November, 2012. Mayor Avis noted Resolute has endeavoured to ensure the protection of the asset in the interim.
While the mayor did not reveal the name of the company which signed the letter of intent with Resolute, the Times confirmed yesterday that Expera Specialty Solutions was in Fort Frances to meet with district municipal leaders on Tuesday afternoon and six Treaty #3 First Nations representatives that evening.
But Mayor Avis did say the meeting was very positive.
“At the presentation from the new company, we learned that they are a dynamic corporation who has a diverse line of specialty products, and has been able to adapt their focus to meet the changing market needs,” he remarked.
“We believe this speaks to the company’s long-term sustainability,” he added.
