Province grants extension as Northern Pulp studies plans for new mill

The Nova Scotia government has granted a five-week extension to Northern Pulp as the company works on plans to build a new paper mill on the province’s southwestern shore four years after it was granted protection from creditors.

The government announced the extension late Monday, stating that the company “has not reached the financial threshold” to support the proposed project in Liverpool. Northern Pulp has been under creditor protection since June 2020, following the closure of its kraft paper mill in Nova Scotia’s Abercrombie Point. The shutdown was a result of Northern Pulp’s failure to meet the province’s environmental requirements for a new effluent treatment plant.

A settlement agreement was reached last May between the government and Northern Pulp’s owner, Paper Excellence in British Columbia, bringing an end to years of legal disputes. The company has been conducting a feasibility study for a new mill at or near the site of the former Bowater Mersey Paper Company in Liverpool. However, they now require more time to complete the project.

The extension granted by the Nova Scotia government allows Northern Pulp to continue working on their plans for the new paper mill. The company is hopeful that with the additional time, they will be able to secure the necessary financial support to move forward with the project.

The proposed paper mill in Liverpool holds the potential to create jobs and boost the local economy in the region. It is seen as a significant opportunity for Northern Pulp to revitalize its operations and contribute to the growth of the forestry industry in Nova Scotia.

As Northern Pulp continues to navigate the complexities of building a new paper mill, stakeholders are watching closely to see how the project unfolds. The extension provided by the government underscores the importance of this development for the province and the potential benefits it could bring to the community.

Overall, the granting of the extension signals a continued commitment to supporting Northern Pulp in their efforts to establish a new paper mill in Nova Scotia. With the additional time granted, the company can focus on securing the necessary resources to make their vision a reality.