By Rosalind Russell – 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.
Photo of Domtar Mill by Rosalind M Russell
Photo supplied of deal signed – Algoma Manitoulin MPP Bill Rosenberg says, “Great news, a purchase agreement has been signed between BMI Group and Domtar in Espanola, congratulations to all parties involved, the future looks bright.” Part of the team was Justus and John, joined by Paul Veldman, Mayor Doug Gervais, and MPP Bill Rosenberg. Photo provided by Bill Rosenberg.
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