Espanola’s Domtar Mill has been sold, but there are regulatory approvals that have to be met.
BMI Group CEO Paul Veldman says the industrial development company has formed Bioveld North Incorporated and has signed an Asset Purchase Agreement with Domtar to acquire the former Espanola pulp and paper mill.
He adds the closing of the sale is subject to customary regulatory approvals, so until then, Domtar will retain ownership of the assets.
Veldman says the acquisition marks a new chapter for the historic industrial site while expanding BMI’s network of industrial multimodal sites across Ontario and Quebec.
He adds a comprehensive agreement includes the 16MW hydropower plant and dam that currently supplies Ontario’s power grid with the company planning to invest in those energy assets to ensure their long-term viability and continued contribution to the region’s sustainable energy resources.
Veldman says they are looking forward to working closely with the town, upper government and surrounding communities to realize the competitive advantages of the region.
The mill, which was indefinitely idled in 2023, employed 450 workers, 32 of whom continue to manage and maintain the site.
No other details have been released at this time, however, Espanola Mayor Doug Gervais says we are optimistic about this next chapter and the acquisition that has been announced.
The buyer has been engaging with the municipality, and we have been focused on ensuring that the interests of our community and region are made a priority.
We look forward to the months ahead as this deal is finalized and as plans for the site unfold.
