Skip to content

Unifor reaches understanding with proposed buyer of Fort Frances mill

Union presses Ontario government to ensure wood supply for new buyer.
Fort Mill
Resolute Forst Products closed the Fort Frances mill in 2014 (Tbnewswatch file)

FORT FRANCES, ON — The labour union that represented workers at the Resolute Forest Products mill in Fort Frances says it has already been in discussions with a potential buyer of the mill.

According to Unifor national representative Stephen Boon, the union has talked to Repap Resources Group, headed by Sean Twomey, about its proposal to purchase the mill, and "it is fair to say that we have a general framework in place for finalizing a long-term start-up collective agreement upon the successful sale of the mill."

The Town of Fort Frances announced last Thursday that Repap, a private investment group, is partnering with 4Front Capital Partners in a bid to buy the shuttered mill from Resolute.

According to the statement, Repap has "the intention of quickly moving to restart the facility in 2019" to produce sack Kraft (packaging grade) paper.

The mill was closed in 2014, costing the Fort Frances area hundreds of jobs.  

At the request of the Ontario government, Resolute committed to continue to keep the plant heated to protect the infrastructure in the event of a future sale.

However, Boon said Resolute has publicly indicated that a number of demolition companies have expressed interest in acquiring the mill as well.

"It should be made abundantly clear to Resolute that if it were to decide to pursue demolition...every citizen in the region would demand Resolute lose any control of the mill's traditional wood basket," the union official said.

Boon added "There should be no incentive for Resolute to demolish that mill over selling it, and I would expect Minister Greg Rickford (MPP for Kenora-Rainy River and minister of Energy, Mines, Northern Development and Indigenous Affairs) and every elected leader in the province should share this view."

He said it's "imperative" that the Ontario government ensure that Repap or any company willing to resume production gets the volume of wood supply that has historically been allocated to the Fort Frances mill.

Boon estimated that reopening the mill would create over 250 direct jobs and several hundred more indirect jobs.

Thus far, there has been no statement from Repap officials. The announcement from the Town of Fort Frances said the company's management team "consists of professionals with more than 180 years of combined senior executive experience in the pulp and paper industries."

Contact information for Twomey indicates that he is based in Stamford, Connecticut.

Resolute issues statement about status of mill

In response to an inquiry by Tbnewswatch, a spokesperson at Resolute's head office in Montreal said the company received a letter last week from Repap "indicating an interest in acquiring the Fort Frances mill."

Seth Kursman, vice-president/corporate communications, said Resolute representatives will meet with Twomey and his associates.

His statement indicated, however, that there may be other options for the mill.

"There is a growing number of people and organizations expressing an interest in properties associated with the site," Kursman said.

According to the Resolute spokesperson, after deciding that a return to manufacturing at the mill is "highly unlikely," the company recently turned its focus to a potential community development project "to reposition the site with an emphasis on environmental stewardship and community benefit."

Kursman added that, as a gesture of goodwill, Resolute transferred two associated properties to the town.

He noted the company spent over $30 million since 2014 to keep the mill in a "hot idle" state while it explored its options.

 

 

 



Gary Rinne

About the Author: Gary Rinne

Born and raised in Thunder Bay, Gary started part-time at Tbnewswatch in 2016 after retiring from the CBC
Read more


Comments

push icon
Be the first to read breaking stories. Enable push notifications on your device. Disable anytime.
No thanks