Resolute Forest Products rejects bid on idled paper mill

Resolute Forest Products, headquartered in Montreal, rejected a bid from a private investment group interested in purchasing its idled paper mill in Fort Frances, Ontario. The investment group, Repap Resources, notified Resolute Forest Products that it wanted to negotiate the purchase of its Fort Frances mill. 

According to a news item from the Canadian Broadcasting Corp. (CBC), Repap Resources Group submitted a multimillion-dollar offer to purchase the mill and its assets. Resolute closed the mill in 2014. In December, Repap reported that it intended to restart the Fort Frances mill to produce packaging grades, such as kraft.

However, Resolute said Repap’s most recent offer fell short on multiple fronts. Resolute President and CEO Yves Laflamme wrote a letter to the Fort Frances mayor to report that Resolute signed an agreement with a company that specializes in redeveloping industrial sites in January, but he wrote that the company also considered interest from other parties, including Repap. CBC reports that Laflamme’s letter said that Repap was the only party to submit a bid. 

According to the CBC news item, Laflamme added that it’s “unlikely” for Resolute to restart the mill operations in Fort Frances. He wrote that the company is focused on a community development project at the Fort Frances site.