Paper Excellence announces plans to restart P.A. pulp mill in coming years

By Alison Sandstrom, paNOW

The company that purchased the defunct Prince Albert pulp mill in 2011 says it plans to restart the facility as early as 2023.

Paper Excellence announced Friday it has spent more than $600,000 on engineering and consulting work for new equipment at the site and to evaluate existing equipment that will be refurbished.

“We plan to replace the entire fibre line from the digester to the last bleaching stage. This will replace the heart of the mill and let us take full advantage of the existing recovery boiler which is one of the most modern in Canada,” Carlo Dal Monte, vice-president of energy and business development at Paper Excellence, said in a media release.

“While this is an expensive strategy, it will simplify construction and minimize commissioning risks. Once we are up and running, we will also realize a significant improvement in product quality, operating costs and environmental performance compared to the mill that was shut down in 2006.”

According to Paper Excellence’s website, the estimated cost to restart the facility is $550 million.

Graham Kissack, vice-president of EHS and corporate communications at Paper Excellence, told paNOW the company was still working on the details of various aspects of the project including financing, investment, and fibre supply agreements.

“There’s still a lot of work and a lot of details that need to be fastened down for the restart,” Kissack said. “And if that were to happen, that’s probably likely to be happening in 2023. So there’s still a great deal of engineering that needs to happen, procurement, and some construction at the site to make some of the upgrades that we want to implement.”

Paper Excellence is also meeting with the Saskatchewan government and Indigenous nations on the project. Kissack said the reopened mill will employ 200 people and create more than $300 million per year in economic benefits for the Prince Albert region.

Asked about how much assurance people can have the mill really is reopening, Kissack said: “There’s no sure thing in life, but we like Saskatchewan in terms of business climate, availability of fibre basket and skilled workers. We think it’s a good place to be, which is why we’ve held the mill for so long. The non-compete agreement with the previous owner is expiring in the next couple months, so we’re in a position to be firing it (the mill) back up.”

Paper Excellence signed a 10-year non-compete agreement with the mill’s previous owner, Domtar, when it purchased the facility in 2011. That agreement expires in March.

For his part, Rodney Staff — the president of Unifor Local 1120, which represents the 185 staff who have recall rights to future jobs at the mill — says Paper Excellence’s Friday announcement is exciting, and the reopening of the mill will have major spinoff benefits for the whole region.

“This is a very good opportunity for Prince Albert, the people of Prince Albert, business owners and everybody in northern Saskatchewan,” Staff said.

Prince Albert Mayor Greg Dionne declined to comment on Paper Excellence’s announcement, saying he was waiting for more information on the project.