Newfoundland and Labrador invests in sawmill industry

The province of Newfoundland and Labrador has recently invested in two sawmill companies: Holson Forest Products and Burton’s Cove Logging and Lumber Limited.

Holson Forest Products will receive $10 million ($7 million in a non-interest bearing 15-year loan from the Department of Natural Resources, $2 million provincial grant, and $1 million from the Department of Environment's Green Fund) to construct a new pellet plant, new sawmill and wood inventory yard.

The 40,000 tonne wood pellet plant is expected to be operation in the winter of 2010. The development of the wood inventory yard will see approximately 30 harvesters go to work immediately, stockpiling product for when the rest of the operation comes in full production.

Burton’s Cove Logging and Lumber Limited will receive $500,000 in equity financing to assist with the purchase and installation of new equipment and to modernize their sawmill. The provincial government also announced it will purchase 10 non-voting common shares in the company, each valued at $50,000. Redemption of the shares will occur over a five-year period, beginning in 2016. The company employs 42 full-time workers.

Sources:
Holson Forest Products and province team up to save woods industry (Farm Focus)
White Bay sawmill getting half-million dollar investment (The Western Star)

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Issue date: September 1, 2009

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