Terrace Bay Pulp has emerged from creditor protection and is back in business. The northwestern Ontario pulp mill resumed production in late September, aided by financial support from the provincial government and $30 million in financing from a Toronto-based lender.
More than 300 people have returned to work at Terrace Bay Pulp Inc., which had been shut down since 2009. The kraft pulp mill is owned by Buchanan Group.
Forestweb reports the mill has restarted only one line, which has a capacity of 350,000 tonnes/year, producing northern bleached softwood kraft (NBSK) pulp.
The province is providing a conditional $25-million term loan to TBPI to help refinance the restart of the mill.
Located in a town of about 2000 people, Terrace Bay Pulp has a significant economic impact in the region, providing direct jobs in the mill as well as supporting employment in woodlands operations and the transportation industries which supply the mill.