Domtar cool to pulp mill sale proposal

Domtar,owner of the closed pulp mill in Prince Albert, Sask.,is throwing cold water on hopes another pulp company could reopen the facility.

In 2006, the mill closed, throwing hundreds of well-paid employees out of work.

Since then, various companies, including an ethanol venture, have looked at the possibility of buying it, although nothing concrete has come about.

On the weekend, however, former mill workers signed an agreement with prospective buyer Paper Excellence, which wants to reopen the mill.

But Domtar says it's not going to happen.

Company spokesperson Bonny Skene said Domtarhasn't talked to Paper Excellence and they're not interested in helping competitors put more pulp on the world market.

"It would just compete with existing facilities that we have," she said. "It would be selling to a competitor."

Saskatchewan Energy and Resources minister Bill Boyd hopes he can change the company's mind. The ministry plans to set up talks with top executives at Domtar, possibly as early as Wednesday.

"At this point we're working on setting up a call with Mr. [Patrick] Loulou, the vice-president in charge of the facility," Boyd said. "He's always been very good at getting back to us. We'll have a good discussion with him, I'm sure."

Domtar says plans to demolish the mill site are still going ahead. That could happen by early next year.