Thunder Bay

Hornepayne, Ont., mill owners unable to strike deal with province, MPP says

The MPP for Algoma-Manitoulin said there is no new deal between the provincial government and the owners of a lumber mill in Hornepayne, Ont.

Permanent closure would be 'devastating' for community, Michael Mantha says

What started off as a temporary three-week closure of a lumber mill in Hornepayne, Ont., has lasted for more than two months. (Jeff Walters/CBC)

The MPP for Algoma-Manitoulin said there is no new deal between the provincial government and the owners of a lumber mill in Hornepayne, Ont. 

Michael Mantha, a New Democrat, said the province met with officials from the Olav Haavaldsrud Timber Company 10 days ago and have failed to reach a new agreement.

The company closed the mill in late November 2015, laying off 146 people, because it is seeking to resolve an issue around selling power to the provincial grid from its co-generation plant. 

Employees and town officials were initially told that the company needed three weeks to conduct negotiations and if an agreement wasn't reached, it would be permanently closed. What began as a temporary three-week shutdown has now lasted for more than two months. 

Mantha said it would be "devastating" for the community of more than 1,000 residents if the remains shut down.

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