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Shin Ho reconsidering Lakehead pulp mill proposal.

Shin Ho reconsidering Lakehead pulp mill proposal

Shin Ho Canada is reconsidering its plan to construct a pulp mill in Thunder Bay.

The South Korea-based company had been searching for a site to build the $150-million plant after discounting both the former MacMillan Bloedel Paipoonage Township plant and a site adjacent to Abitibi-Price Inc.'s Provincial Papers Division.

Shin Ho Canada president Bung Jung told Northern Ontario Business that no decision is expected from Korea for at least one month and that work on the project has ceased.

"It is very difficult to say what their decision will be, but until then everything has been suspended. They are looking at the entire project," said Jung.

Company officials have been deliberating on the fate of the mill proposal since January.

"They have gone back to square one to review the entire process. The picture keeps changing," Jung said.

However, Thunder Bay Economic Development Corporation executive director Dick Charbonneau believes the project will eventually proceed.

"We are looking forward to some positive indication concerning the plan in the near future," said Charbonneau.

NEW MILL

He speculated that Shin Ho is studying the feasibility of constructing a new pulp mill because pulp prices are reduced. However, he said that it would take at least two or three years to build the plant and prices should have recovered by that time.

"It (the mill) could be in production when prices rebound," commented Charbonneau.

The Shin Ho development has not been without its setbacks in the past.

In March Northern Ontario Business reported that the company had scuttled plans to build the facility on a site adjacent to Abitibi-Price Inc.'s Provincial Papers Division after discovering that the site would require a costly redevelopment.

At that time company spokesman Ken Shin reported that the soil at the site was predominantly landfill and was too soft to support a facility the size of a pulp mill. He said that Shin Ho would have to remove the soil and replace it with a suitable material.

The company estimated the cost of replacing the soil at $8 million.
COPYRIGHT 1991 Laurentian Business Publishing, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Report on Forestry; Shin Ho Canada's plan to construct a pulp mill in Thunder Bay, Ontario
Author:McDougall, Douglas
Publication:Northern Ontario Business
Date:Sep 1, 1991
Words:350
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