Canfor Pulp Products will part with the Taylor BCTMP pulp mill site. The mill has been standing idle for more than two years.
Canfor Pulp announced it entered into an asset purchase agreement to sell the Taylor site for a price of CAD7m. The new unnamed owner is committed to "repurposing the site and developing a long-term plan which will benefit the community," according to the company. Further transaction details are to be shared upon completion of the sale.
The transaction was subject to customary closing conditions, with closing expected to occur during the first quarter of 2024, Canfor said.
The Taylor Pulp mill was the only one within Canfor Pulp to produce bleached chemi-thermomechanical pulp (BCTMP) and had a capacity of 220,000 tpy. Canfor Pulp had temporarily stopped production at the Taylor mill in late 2021 due to transportation shortages and rising inventories. The temporary downtime was extended over and over again until March 2023 when the company decided to not restart BCTMP operations at the Taylor mill due to reduction in fibre availability in British Columbia.
Canfor Pulp owns and operates three mills in Prince George, BC, with a total capacity of 780,000 tpy of Northern Bleached Softwood Kraft (“NBSK”) pulp and 140,000 tpy of kraft paper.