Saskatchewan Premier Lorne Calvert is set to make an announcement about forestry in Prince Albert Wednesday and there's speculation it could be about reopening part of the city's closed pulp and paper operation.

More than 300 former millworkers packed into the city's union centre for a closed door meeting Tuesday night.

Before the mills closed, Weyerhaeuser was Prince Albert's largest private sector employer.
(CBC)

While they were saying little afterward, it's believed they were mulling over a plan by forestry company Domtar and the province to reopen at least part of the mill.

"The local union made an important decision today and I guess you'll be able to hear about what the government's plans are tomorrow," said Dave Coles, national president of the Communications, Energy and Paperworkers Union, which represented mill workers in Prince Albert.

"It has the potential to be really positive," he said.

Some 700 people lost their jobs when the Weyerhaeuser pulp and paper mill closed down last year. More job losses in the forestry industry followed. The facility was the lynchpin of the industry in Saskatchewan and the closures led to other sawmill shutdowns around the province.

The closed facility was later purchased by pulp and paper giant Domtar.

Under labour laws, the union would need to be involved in any attempt to reopen the business.

Calvert and Forestry Secretariat Minister Maynard Sonntag are scheduled to make an announcement at 3 p.m. CT. They haven't said if it concerns the closed mills.

However, a Regina radio station, CJME, was reporting Tuesday afternoon that the government is set to announce a deal to reopen the pulp mill part of the operation, with the government taking a 10 per cent share of the venture with Domtar.

Saskatchewan Liberal leader David Karwacki said many people in Prince Albert were angry at the government for letting the mills shut down in the first place. He also said he's hopeful a deal is imminent.

"Coming into an election period the government needed to do something," he said.

Karwacki said if there is a deal, he hopes that Domtar will assume some of the environmental responsibility for the mill and its other northern operations.