Company plans to buy idled Domtar mill in northern Ont.

There's renewed hope in Espanola as a company has announced plans to buy the former Domtar Mill and update its infrastructure.

A Canadian company has announced plans to purchase the assets of the Domtar pulp and paper mill in Espanola, which closed in 2023.

Bioveld North Inc., a subsidiary of BMI Group, has signed a purchase agreement with Domtar, subject to regulatory approvals.

“The comprehensive agreement includes a 16-megawatt hydropower plant and dam that currently supply Ontario’s power grid,” the company said in a news release Thursday.

“BMI Group will invest in these energy assets to ensure their long-term viability and continued contribution to the region’s sustainable energy resources.”

The mill employed 450 workers when it closed, 32 of whom continue to manage and maintain the site. Spokesperson Olga Patronik told CTV News in an email that the mill has been “exceptionally well-maintained after being idled,” a credit to the employees still on the job.

“We’re motivated to put the facilities and forest resources back to work through conventional and innovative new approaches and are actively developing plans to realize their potential,” Patronik said.

“Espanola itself is a remarkable small town with amenities like its own ski hill and a golf course that we look forward to supporting as a staple of the community.”

More details still to come

She said more details about the company’s revitalization plans will be released once the sale agreement is finalized.

Espanola Mayor Douglas Gervais said he’s optimistic about the deal and what it will mean for his community.

“There’s still a lot of other details have to be worked out,” Gervais said.

“It’s probably going to still be a couple of months before things are really, locked in.”

While he doesn’t have any specifics about the company’s plans, he’s encouraged that activity will be returning to the site.

“It’s going to get something proactive going here,” Gervais said.

Bring jobs back

“We’re hoping it’s going to bring employment to the community, bringing in more jobs, and eventually, hopefully in the future, it’ll be a better for our tax base.”

“We look forward to working closely with the Town of Espanola, neighbouring Anishinabek communities, as well as federal and provincial governments to realize the competitive advantages of this remarkable region,” Paul Veldman, CEO of BMI Group, said in the news release.

“The knowledge and skills of the people here are second to none. Their expertise will be critical in shaping the next chapter,” added Veldman.

The company has led similar projects at former industrial sites at the Abitibi Paper Mill and in Sault Ste. Marie.