Possible suitors for Mattawa mill: EDC hopeful of announcement by spring.

• Author: Ross, Ian
• Position: FORESTRY

Civic proponents seeking to revitalize a shuttered Tembec sawmill near Mattawa are hopeful of making a major announcement on new ownership by March.

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Bob Corriveau, chairman of the Mattawa Bonfield Economic Development Corporation (MBEDC), said there has been a lot of interest since the organization took possession of the mill late last summer and adds some "serious contenders" have come forth.

In early January, Corriveau said he was expecting to make an announcement on the identity of a new company within 60 days.

"We've got some strong possibilities, but nothing is signed."

An undisclosed southern Ontario company with expertise in hardwood flooring expressed interest, but nothing formal had been signed. A site visit was also conducted for a northeastern Ontario company with wood pellet plans. A U.S. firm was also interested.

The sawmill has sat idle since July 2008. It had been steadily losing 500 jobs over five years. Fifty-nine staff were working at the time of the closure.

After months of negotiating, economic development officials struck an Aug. 28 deal with the Temiscaming, Quebec forestry company to acquire the mill for the bargain price of $1.

The MBEDC hoped to lease the mill property to a prospective tenant to maintain some measure of local control. News of the takeover attracted much media and industry attention. Corriveau believes something tangible is not far away.

"We took possession of this in August. Time costs money and we're trying to market this on our own."

Corriveau, who hosted several site visits for possible suitors last fall, was reluctant to disclose the identity or expertise of any of the interested companies, saying he had signed "more than one" confidentiality agreement.

"These people will do their due diligence, look at the site, evaluate it and see what they want to do."

Key to the mill re-opening is having access to Crown fibre. Ontario's wood supply competition, to access 11 million cubic metres of unused wood and biomass, is now underway with a deadline for companies and organizations to submit business proposals by March 4.

Northern Development, Mines and Forestry Minister Michael...