Norampac Agrees to Sell Red Rock Linerboard Mill
Sept. 7, 2007 - Norampac said that it has signed a Letter of Intent for the sale of its Red Rock linerboard mill, located in Northwest Ontario, to North American Logistic Services Inc (NALSI).
The deal calls for Norampac to pay NALSI C10 million in an effort to encourage the start-up of a new line of production at the facility.
"We are pleased to contribute to the economic development of the region by allowing the start-up of a new business, which should prove favorable for the local economy," said Marc-Andre Depin, president and chief executive of Norampac.
The Red Rock mill was shutdown indefinitely on October 3, 2006, due to unfavorable economic factors, Norampac said.
Norampac expects the deal to close by the end of October 2007.