Repap Resources Submits ‘Multi-Million Dollar’ Bid for Shuttered Northern Ontario Mill

A private investment group has made an offer for the shuttered mill in Fort Frances, Ont., and says, if its bid is successful, it will restart the plant, putting hundreds of people to work.

The mill, owned by Resolute Forest Products, was closed in 2014 and no deal has yet come together for the property, although there has been reported interest. Repap Resources Group is the latest to announce its intentions to buy the mill.

Repap’s “multi-million dollar offer” for the kraft paper plant, which it submitted prior to a March 15 deadline, also contains proposals to work cooperatively with Resolute, including offering saw logs it harvests to Resolute’s sawmills in Ignace and Atikokan in exchange for wood chips as well as an offer to purchase raw pulp from Resolute’s Thunder Bay mill, said Repap’s president, Sean Twomey.

“We believe that we’ve made an offer to Resolute that is financially attractive, that offers long-term operational benefits for their sawmills,” Twomey told CBC News. “And from a public policy standpoint, obviously, [one that] creates between six and seven-hundred jobs.”

About half of those jobs each would be in mill and forestry operations.

Twomey said the mill would be primarily focused on producing heavy kraft paper, which is used for things like cement and animal feed bags, as well as other packaging. He added that the mill could also produce market pulp — the raw material that can be subsequently refined into other products, like tissue paper, specialty paper and other packaging.

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