Unnamed groups look at Thunder Bay pulp plant.At least a "handful" of groups have expressed interest in the Cascades Fine Papers Group Thunder Bay Thunder Bay, city (1991 pop. 113,946), SW Ont., Canada, on Thunder Bay inlet of Lake Superior. The city was created in 1970 by the amalgamation of the twin cities of Fort William and Port Arthur and two adjoining townships. plant, the city's senior development officer says. "I can tell you that there are a few groups that are interested in the operation," says Richard Pohler. "They are at the early stage of their due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. ." The manufacturer of coated fine papers, including specialty fine papers announced the plant closure for Jan. 21, citing high energy and wood costs as well as poor market conditions. The decision has put 275 people out of work. The potential investors are determining whether there is an opportunity to salvage salvage, in maritime law, the compensation that the owner must pay for having his vessel or cargo saved from peril, such as shipwreck, fire, or capture by an enemy. Salvage is awarded only when the party making the rescue was under no legal obligation to do so. the facility and run it as a pulp and paper operation with low energy consumption. Modifying the product line and examining "additional capital investments" are being discussed as part of the due diligence process. "The key is to add as much value as possible to get into that specialty market area," he says. The more refining done to a two-by-four, the more value that can be extracted from it. What is interesting about this property is that it is a fine paper mill as opposed to a newsprint newsprint low grade paper used for newspapers. Old newspapers are fed to cattle as an alternative roughage and may occasionally be ingested by dogs. Significant amounts of lead are accumulated in tissues; no cases of poisoning have been recorded in cattle, though it has been mill. The overall fine paper market is still growing at approximately two per cent per year, while newsprint manufacturers have experienced a six per cent decrease in their market, Pohler says. So, as far as he is concerned, there is still room to jump into the specialty market. The prospective buyers have spoken with Cascades about the plant as a matter of interest. The company is welcoming the prospective buyers to the table. Hubert Bolduc, Cascades's vice-president of communications, says they have made contact with a potential buyer, but negotiations will not take place until the groups come to the table with financial reinforcements reinforcements reinforce npl (Mil) → renfort(s) m(pl) . Before that happens, environmental, engineering, marketing, labour and financial issues pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the plant will need to be examined. That could take several months, Pohler says. Some of the members would like to finish it sooner. Each potential buyer has a proven track record of investment in the region. One or more of the parties may work in unison u·ni·son n. 1. Music a. Identity of pitch; the interval of a perfect prime. b. The combination of parts at the same pitch or in octaves. 2. with each other through the due diligence process to obtain the appropriate information. Pohler says some have a great deal of experience in the forestry sector. The prospective buyers have already voiced their concerns over the high costs associated with energy use and wood supply. www.cascades.com www.thunderbay.ca By KELLY LOUISEIZE Northern Ontario Business Northern Ontario Business is a Canadian magazine, which publishes monthly in Greater Sudbury, Ontario. The magazine covers business news and issues in Northern Ontario. |
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