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Pacific West reaches deal with NS government

Nova Scotia Premier Darrell Dexter announced the province's commitment to support the sale of the NewPage paper mill to Pacific West, which will bring 1,400 jobs to the region and more than $11 million in annual revenue to the economy.

August 22, 2012  By Nova Scotia Premier's Office

The investments will support worker training, improvements to make the mill the lowest-cost, most-efficient operation in North America and help revitalize the forestry sector to take advantage of today’s market.

The provincial assistance is contingent on Pacific West purchasing the mill. Pacific West is waiting for a ruling on an application from the Canada Revenue Agency.

Premier Dexter says the province is doing everything reasonable to support the re-start of the mill and the province is waiting on the ruling of the CRA. Pacific West has said if the application is rejected, it will not purchase and re-start the mill.

“These investments will support the most modern paper machine in the industry and the development of a new and innovative forestry sector that will give future generations the opportunity to live, work and raise a family in Nova Scotia,” said Premier Dexter.


Restarting the mill will bring 330 people back to work, protect 600 indirect jobs in the woodlands, sawmills, and power generation industries, and provide 500 more jobs for local communities.

The province, through its Jobs Fund, is providing a financial package that includes:
— a $24-million loan to support improved productivity and efficiency to make this the most efficient paper producer in the world
— a $40-million repayable loan for working capital to help the mill become the lowest cost and most competitive producer of super calendar paper
— $1.5 million to train workers to operate the most efficient paper producing machine in the industry
— $1 million to implement a marketing plan to sell the Nova Scotia forestry sector to the world and create customer opportunities

The province, through the Department of Natural Resources, has also agreed to invest:
— $20 million to buy 51,500 acres of land to help meet the province’s commitment to increase Crown land share and ensure the resource is protected for future generations
— $3.8 million annually, for 10 years, from the forestry restructuring fund to support sustainable harvesting, forest land management, and fund programs that will allow more woodlot owners and pulpwood suppliers to become more active in the management of their woodlands
— funding for the development of a Mi’kmaq Forestry Strategy and a Mi’kmaq Forestry Co-ordinator

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