Plywood returns to Cochrane: Hardwood facility purchased by B.C. investors.

• Author: Kelly, Lindsay
• Position: FORESTRY - True North Hardwood Plywood - Rockshield Plywood Corp

When True North Hardwood Plywood closed in 2013, 240 people lost their jobs and Cochrane lost one of its biggest economic generators. But a new company is taking its chances on the facility, bringing with it the promise of employment and long-term potential.

Rockshield Plywood Corp., a subsidy of the B.C.-based investment firm Rockshield Capital Corp., acquired the facility in April, investing more than $11 million--a combination of private capital, bank loans, and government grants and loans--in its purchase and the startup of operations.

The mill, now called Rockshield Engineered Wood Products (REWP), will produce aspen core plywood. It started back up in May, creating work for more than 100 employees.

"This is an exciting business, which was purchased at an opportunistic and distressed price with compelling economics," said Rockshield director Marc Cernovitch in a statement. "A first-rate management team has been assembled to lead REWP and run the operation, as well as identify and evaluate other opportunities in the forestry sector. We look forward to providing the financial and strategic support necessary to see this business through to success."

The company cited a return of housing starts to normal levels, favourable exchange rates between the Canadian and U.S. dollars, and lower oil prices as benefits to the acquisition. Rockshield said it had also reached a non-binding agreement with area First Nations, and had a good labour agreement in place.

Cochrane Mayor Peter Politis said he's optimistic that the mill, which has faced troubles in the past, has long-term potential for success.

"I've been impressed," said Politis, who has a background in forestry. "I know this facility inside and out; I know the dynamics it faces, the challenges it faces. We've got a great workforce here, so that if the right people get together, they're going to make a lot of money, and I think, so far, I feel...