The province says an idle mill in Wawa will re-open and create about 40 jobs in the process.

Rentech Incorporated will convert an idle mill to an industrial wood pellet production facility.

The province says production is set to begin next fall, and the machine will have an annual production of 360,000 tonnes of pellets by 2016.

NDP Algoma-Mantoulin MPP Michael Mantha

(CBC)

In a news release, NDP Algoma-Mantoulin MPP Michael Mantha said it's promising to see innovation and renewal in the forest sector.

"I have been working closely with Rentech over the past 18 months while ensuring the government was aware of the importance of this project," said Mantha.

"Many of our communities have been devastated by the downturn in the forestry sector and this project will bring much-needed jobs back to the community".

The company has a contract to export pellets to a power generating facility in the United Kingdom which is converting from coal-powered generation to burning biomass fuel.

"The forestry sector has been experiencing difficulties for quite some time.  It is promising to see some innovation and renewal in this sector from companies like Rentech," said Mantha.

"I know that this project will have positive economic benefits, for not only the community of Wawa, but for the surrounding communities as well."