By Nigel Maxwell

Update: Pulp mill under new ownership

Apr 27, 2011 | 10:21 AM

The Prince Albert Pulp Mill is under new ownership.

Paper Excellence has finalized the purchasing deal with the province and Domtar.

The company, which has invested more than $200 million into the conversion of the facility, hopes to begin producing dissolving pulp by the second quarter of next year.

“This is a very good announcement for all of Saskatchewan,” said Bill Boyd, minister responsible for Energy and Resources.

The forestry industry has been through some dark times, but Boyd said he is confident the industry will rebound.

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“We're seeing housing starts up a little bit in the United States. We see the opportunity for sale of pulp in other markets. This particular one, dissolving pulp, will go not into paper production but will go into the production of rayon, a fabric that competes in the cotton market,” he said.

The provincial government is allocating $500,000, per year for the first two years towards training of new mill operators.

“We have a role in term of the training, in terms of the forestry allocation and also with the power purchase agreement with SaskPower for the biomass facility that will be part of the operations as well.”

The City of Prince Albert is expected to see big returns from the opening of the facility — at least 200 direct jobs and hundreds of indirect jobs.

“Certainly accommodation in the hotels and any of the rental accommodations are going to be absorbed very quickly, as those crews start to arrive. Those are some of the issues that council will have to look at,” said Mayor Jim Scarrow.

He said he was very relieved to hear the announcement.

“This has been a long period (that) the pulp mill would reopen and then something would come about. But this was something we needed to hear, that something was official.”

Paper Excellence has started the process of hiring key personnel in Prince Albert.

They expect to have the office open within a week.

nmaxwell@panow.com