Freshwater Tissue Officially Abandons Restart of Samoa Pulp Mill

Sept. 30, 2010 - Freshwater Tissue Company, owner of the Samoa pulp mill in Northern California, has abandoned plans to restart the mill due to lack of financing.

According to a news report in the Times-Standard, Freshwater Tissue's president Bob Simpson said that it has proven impossible to obtain loans to restart the mill.

Two groups are interested in buying the mill's boiler, Simpson said, but there is no firm date for when that sale might take place.

Simpson told the Times-Standard that he could not offer any plans for the future of the facility or the 156-acre property it sits on.

Freshwater bought the mill in February 2009, about three months after former owner Evergreen Pulp Inc. shut down the operation.

Freshwater had initially looked to add tissue production capabilities to the Totally Chlroine Free (TCF) pulp mill, but with no funding, the plans never materialized.

Simpson said that FDIC regulations make it impossible for banks to finance such start-up projects.

SOURCE: Times-Standard

See related story:
Failed Efforts to Gain Funding Doom Samoa Mill (10/20/2009)