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Management Side
Domtar: Plenty of interest in buying Crofton mill

CANADA (From news reports) -- Numerous companies and investors have expressed an interest in purchasing the Domtar pulp mill site in Crofton since the facility shut down operations earlier this year.

Domtar said in a statement that it is exploring a variety of possibilities for the future of the waterfront site, and North Cowichan Mayor Rob Douglas said a number of interested parties have contacted the municipality directly looking to buy the site for a range of potential uses, including manufacturing, energy production, and other industrial purposes.

"The current owner (Domtar) and the provincial government are likewise receiving a broad array of similar proposals," Douglas said.

"Domtar has advised North Cowichan that it has retained BMO Capital Markets to evaluate potential purchase proposals and expects to make a decision regarding the site's future in the coming months."

Douglas said that as decisions about the site's future use will ultimately rest with Domtar or a prospective new owner, and not the municipality, he is encouraging interested parties to contact Domtar directly.

"That said, the municipality would welcome being kept informed of proposals as they develop, given the site's significance to the community," he said.

The Crofton pulp mill, which had been in operations since 1957, closed down due to continued poor pricing for pulp and lack of access to affordable fibre in B.C., leaving more than 350 well-paid employees out of work.

The mill was also North Cowichan's biggest single taxpayer, adding up to $5 million to the municipality's coffers each year.

With the mill now completely shut down, Domtar said the facility continues to be secured and "de-risked" in terms of removing all major chemicals, fibre and fuels from the site.

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