Meadow Lake mill sold to Indonesian company
A financiallytroubled pulp mill in Meadow Lake, Sask.,has a new owner.
On Friday, a spokesman for the mill announced that a major international pulp and paper company based in Indonesia has bought the plant for $37 million.
The mill, which is partly owned by the provincial government and partly by a private company, has been operating under creditor protection for almost a year.
The sale price represents a fraction of the money that's been invested in the mill.
The Saskatchewan government was owed the most afterputting inan estimated $875 million.
Once the transaction is completed, the province will get back less than five per cent of that amount.
A lawyer involved in the sale says the new owners are promising to run the mill for at least five years and preserve as many jobs as possible. About 150 people work there.
The purchase is by a company called Sinar Mas Group, which owns Asia Pulp and Paper.