Catalyst Paper sells Elk Falls site for $8.6M in deal buyer says will create 400 jobs
August 16, 2012 - 8:07 PM
RICHMOND, B.C. - Catalyst Paper says it has reached an agreement to sell its Elk Falls site in B.C. to Pacifica Deep Sea Terminals for $8.6 million in a deal the buyer says will create 400 new jobs in the region.
The forestry company said the sale of the industrial site in Campbell River completes its bid review process that began earlier this year.
The deal is expected to close Sept. 5.
"We are very pleased to have attracted an experienced developer with the capacity and an industrial concept that will fully utilize the site's infrastructure and bring new business and jobs to the region," said Kevin Clarke, Catalyst president and chief executive officer.
Privately-held Pacifica owner and director Harold Jahn said the site is strategically located for a variety of uses.
"And we intend to transform it into a dynamic industrial park and port facility with the goal of creating 400 full time jobs in the Campbell River region over the next three years."
The former pulp and paper site was permanently closed in 2010. Since then, equipment has been decommisioned and demolition has been completed.
The Elk Falls mill began operation in 1952, and at its peak, produced 784,000 tonnes of pulp, paper and kraft paper annually.
Jahn, who is developing three industrial parks in northern Alberta, says plans for the new industrial park include housing his companies developing algae based solar cells, a lithium battery manufacturing facility, ocean wave energy equipment fabrication and an electric vehicle assembly plant.
Catalyst, based in Richmond, B.C., filed for creditor protection on January 31, after some workers and bondholders rejected its plan for restructuring debt and cutting costs.
News from © The Canadian Press, 2012