A major Gatineau newsprint mill has new owners. However, the deal is conditional on scrapping benefit plans and negotiating a new contract with workers, according to reports.
The $243-million deal to purchase Papier Masson in Gatienau's east end, as well as two other mills in Quebec and a fourth in Virginia, was approved by a Quebec judge. The deal still needs approval from the U.S. bankruptcy courts.
The mills, which are owned by White Birch Paper Company, have been operating under bankruptcy protection since February. Papier Masson employs about 150 people in Gatineau.
The west Quebec pulp and paper industry has been challenged in recent years by a turbulent economy and a high Canadian dollar.
The AbitibiBowater paper mill in Gatineau closed earlier this year, putting 350 people out of work.
White Birch Paper Company has indicated its operations are expected to continue as per usual during the sale process, according to Pulp and Paper Canada, a leading industrial magazine.
The deal is expected to be complete in late November 2010.
