Agreement Reached To Purchase Terrace Bay Mill
McGuinty Government Is Helping To Preserve More Than 275 Direct Jobs
The Terrace Bay Mill in Northwestern Ontario is returning to operation, supporting more than 1,900 jobs across the province.
Aditya Birla Group has agreed to purchase the assets of the idled mill, subject to court approval, and plans to invest more than $250 million to convert the facility to dissolve wood pulp for rayon fibre. The investment would support more than 275 direct mill jobs, 335 woodland jobs and an estimated 1,300 indirect jobs province-wide. Supporting a successful forestry sector is part of the McGuinty government's plan to create jobs for Ontarians and strengthen the economy. A strong economy protects the services that mean most to families - health care and education.
- The forestry sector supports almost 200,000 jobs across over 260 Ontario communities.
- In 2011, Ontario ranked first of all major jurisdictions in North America in foreign direct investment per capita, according to fDi Intelligence (Financial Times Ltd).
- Ontario attracted 840 foreign direct investment projects between 2003-2011, accounting for about $50 billion and over 97,500 jobs, according to fDi Intelligence (Financial Times Ltd).
“Our government is thrilled that this investment will offer new life to the mill at Terrace Bay, the community and the region. This is a boost for long-term prosperity in Northwestern Ontario, one that will help lead the way for the transformation of the forest industry to the new bio-economy. At the same time, it will support jobs for the region.”
“Our government has and will continue to explore opportunities to build Northern Ontario communities. We are working with Northerners to strengthen this great region, and today's announcement is in keeping with our unwavering commitment.”
“Investments like this one demonstrate the strong and dynamic economy we have in Ontario that is spurring economic growth and creating jobs. This is an exciting investment being made by Aditya Birla that creates jobs in Terrace Bay and finds an innovative use for one of the oldest resources in Ontario.”
“I am delighted to hear that the Terrace Bay Mill will re-open. This is great news for our community and I want to thank the provincial government for its efforts and leadership in making this opportunity a reality. On behalf of the community I would like to welcome the Birla Group, who I am confident will find Terrace Bay and the northwest region a great place to work and live.”
“The acquisition of Terrace Bay Mill and its subsequent conversion into a dissolving grade pulp mill is a major strategic move for our business where we are global leaders. The Terrace Bay Mill upon conversion will provide superior quality pulp for our viscose staple fibre business. The provincial government and communities in the Northwest have been very supportive and welcoming. We have about a 6,000 strong workforce operating in Canada and we look forward to furthering this productive and meaningful relationship.”
Kumar Mangalam Birla