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Shin Ho seeks new location for $150-million pulp mill.

Shin Ho seeks new location for $150-million pulp mill

Shin Ho Canada's planned construction of a pulp mill in Thunder Bay is on hold until a suitable site can be found for the development.

Shin Ho will not finalize its commitment to build the $150-million plant until a site can be found.

"We are considering alternate sites, but nothing has been finalized yet," said company spokesman Ken Shin.

The company had been considering property beside Abitibi-Price Inc.'s provincial papers division but has since reconsidered, after discovering that the site would require a costly redevelopment.

Shin explained that the soil at the site, which is predominantly landfill, is 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.

Shin said the company estimated the cost of replacing the soil at $8 million.

Not discounting the site entirely, Shin said the company would prefer an alternate site rather than investing in soil replacement.

The second site being considered, and the one the company appears to favor, is located near the Keefer terminal and is owned by the Thunder Bay Harbour Commission.

Shin was hesitant to comment further on the property except to report that the company is currently preparing for an environmental assessment (EA) study.

"The EA is a big factor. Nobody is sure if we can get it or not."

Shin said company officials do not know when the study will be complete.

"We are at a very critical moment," he said. "We've hired a lawyer for the harbour commission site."

Shin indicated that "the general manager (of the harbour commission) has extended his welcome."

Shin Ho appeared in the Thunder Bay area shortly after MacMillan Bloedel put its waferboard plant up for sale because of industry over-capacity.

The South Korea-based company had originally planned to expand MacMillan Bloedel's Paipoonge Township plant and produce pulp using the thermomechanical process.

The idea became unpalatable, however, following strong public opposition, said Shin.

Save the Kam, a coalition of naturalists, residents and sportsmen, voiced strong concerns about the possible pollution in the Kaministiquia River.
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Northern Ontario Business
Date:Mar 1, 1991
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