Tembec Sells Shuttered Pine Falls Mill Site in Manitoba

Oct 8, 2011 - Tembec said that Pine Falls Development Corporation (PFDC) has acquired the Tembec Pine Falls, Manitoba mill property and assets. PFDC is an investment project of NRI Global Inc., a company that acquires and manages assets throughout North America.

The site is being sold for nominal net proceeds and the transaction will not impact Tembec's financial results as its carrying value had been reduced when the newsprint mill located on site was permanently idled.

Tembec indefinitely idled the mill due to a labor dispute on September 1, 2009. After examining a full range of options, Tembec initiated a sales process for the mill in early January 2010, which proved unsuccessful. Tembec then concluded that the permanent closure of the facility was the only viable option, and took that measure in September 2010

Tembec will transfer the site to PFDC who has finalized a plan to remediate the site in an approach that allows for investment recovery, site redevelopment and assured environmental closure.

NRI Global is a private investment firm that acquires distressed or impaired assets. NRI Global has offices in Toronto, Ontario and Buffalo, New York. The firm specializes in pulp and paper, energy, and resource transactions in North America. NRI Global and its subsidiary companies have operational expertise in finance, environmental remediation, site redevelopment, industrial services and trade.

SOURCE: Tembec