MONTREAL – Tembec has sold its shut down newsprint mill and property at Pine Falls, Man. to a private investment firm.
Financial terms of the sale, announced Friday, were not disclosed.
The buyer is NRI Global Inc., a Buffalo, N.Y. private company that specializes in dismantling industrial sites and manages assets throughout North America.
The Montreal-based forestry company (TSX:TMB) said the site was sold for “nominal net proceeds” and the transaction won’t affect Tembec’s financial results since the mill had already been written off when it was permanently closed last year.
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“Tembec will transfer the site to (NRI) who has finalized a plan to remediate the site in an approach that allows for investment recovery, site redevelopment and assured environmental closure,” the former owner said.
NRI Global operates in Buffalo and Toronto and is focused on the pulp and paper, energy, and resource sectors in North America.
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Tembec is a producer of pulp, lumber and paper with about $2.3 billion of annual sales and operations in Canada, France and the United States.
Since a recapitalization a few years ago, it has reduced expenses and cut its debt by $203 million.
In Friday trading on the Toronto Stock Exchange, Tembec’s shares rose 17 cents to $2.48.
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