Company receives financial assistance and wood allocation to reopen Miramichi mill
Arbec Forest Products has purchased and will re-open the OSB mill from Weyerhaeuser which has been idle since it closed in February 2007.
The provincial government is providing a financial package and wood allocation agreement to assist Arbec Forest Products Inc. in reopening an oriented strand board (OSB) mill in Miramichi.
“Forest-product manufacturing is a major focus of our government’s plan to help communities grow and create new jobs throughout New Brunswick,” said Premier David Alward. “Arbec Forest Products Inc. recognizes the tremendous opportunities for growth that exist in the Miramichi region. Our government is proud to work with them and with other partners to provide real hope for Miramichi families.”
The company recently purchased the OSB mill from Weyerhaeuser. The mill has been idle since it closed in February 2007, resulting in the loss of more than 100 direct full-time mill jobs.
“We are so happy that we successfully concluded a transaction with Weyerhaeuser and we are looking forward to working with the fine people of the Miramichi region,” said Tony Meti, chair of the board of Arbec Forest Products. “With the assistance of the provincial government, we will be able to restart the mill and contribute to the prosperity of Miramichi and New Brunswick.”
The provincial government is providing a $15.3-million financial package to the company, including a $1.5-million payroll rebate; a $5.6-million term loan; a $1.2-million contribution for capital expenditures and start-up costs; and a $7-million loan guarantee.
Under the Crown wood allocation agreement, Arbec Forest Products Inc. can annually harvest 277,802 cubic metres of mixed hardwood pulpwood and softwood pulpwood, which is more Crown wood than Weyerhaeuser had when the mill closed.
Once fully operational, at least half of the mill’s wood supply will come from private woodlots.
“Our government wants to see more private wood being utilized in the province,” said Natural Resources Minister Bruce Northrup. “We are pleased that Arbec Forest Products is committed to purchasing a significant amount of wood from private woodlot owners in the Miramichi.”
Arbec Forest Products is a private and integrated company of forest products operating in Eastern Canada. Arbec owns three sawmills and one OSB mill in Quebec and one OSB mill in New Brunswick. Arbec has harvesting rights in Quebec (2,185,900 cubic metres) and New Brunswick (277,802 cubic metres).
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