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Elk Falls mill sale terminated

Pulp and paper producer Catalyst Paper says it has terminated an agreement to sell its Elk Falls site in B. C. to Pacifica Deep Sea Terminals.


December 20, 2012
By The Canadian Press

The move came after the parties were unable to close the deal for a second time.

The $8.6-million sale of the industrial site in Campbell River was originally scheduled to close in early September, but the deadline was extended until Dec. 18.

“It’s disappointing that this transaction with Pacifica could not be completed even with the extended timeline. This is a fully serviced property in an excellent location and we remain confident that the right fit between site and buyer will be found that will bring new jobs and opportunities to Campbell River,” said Kevin J. Clarke, president and CEO of Catalyst.

The Elk Falls mill began operation in 1952, and at its peak, produced 784,000 tonnes of pulp, paper and kraft paper annually.

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The site was permanently closed in 2010. Since then, equipment has been decommisioned and demolition has been completed.

When the sale was announced in August, Pacifica said the deal would create 400 new jobs in the region.