Northlands Forest Products may purchase the Millar Western Forest Products lumber mill in Boyle.
On Dec. 1, Millar Western announced a potential sale of the mill to Fort McMurray-based Northland Forest Products. The news comes less than two weeks after Millar Western announced it would be shutting down the mill and laying off its 91 employees over the next few months.
The deal hasn’t been finalized yet, so details aren’t being released, but, the sale would include the mill’s timber quotas and the rights to harvest within certain areas.
Louise Riopel, Millar Western communications manager, said the negotiations are in the advanced stages and Millar anticipates the transaction will be completed before the year’s end, if the two sides come to an agreement.
“Until such time, there can be no assurance that a definitive agreement will be executed or that a transaction will be completed,” she said.
She also couldn’t disclose whether Millar Western had met with other companies about buying the mill, but said they have been “exploring a range of options to secure a future path for Boyle.”
The final agreement would require approval from the Government of Alberta.
On the pulp side of things, Al-Pac (Alberta Pacific Forest Industries) is showing no signs of slowing down.
On Oct. 22, Hokuetsu Kishu Paper Company, the second-largest fine-paper manufacturing company in Japan, bought up the company. Hokuetsu Kishu produces mostly printing products, specialty paper products, and paperboard.
“We’ve had some structural changes of the minor variety and we’re back in business,” said Al-Pac business unit leader for business development and government relations Brent Rabik. “From our point of view, things are normal again, which is nice.”
The changes include a new president and chief executive officer (CEO), Sam Terao, at the helm who will be supported by Dale Becharsky, the new executive vice-president, chief operating officer (COO) and chief financial officer (CFO).
Rabik said the company has had its ups and downs when it comes international commodity prices, not issues with demand and selling product, like the lumber sector
“Our biggest challenge going forward is the use of electronic media rather than print media,” he said.
“That’s been going for a long time — newspaper usage is down, printing rating grades are down globally as people switch to more electronic media.
“So, that’s a longer-term trend that we have to address.”
As a result, Al-Pac has turned more of its attention to producing tissues, towelettes and personal hygiene products — sectors that are seeing continual growth.
“Al-Pac is one of the last kraft pulp mills built in North America. So, we are by all measures still state-of-the art,” he noted.
“The trend is effecting others long before it’s overly a concern for us.
But, it’s something we have to look at and, like any business, know where your markets are going and who your customers are.”
