The Government of Ontario is prepared to offer a loan of up to $17.2 million to support GreenFirst Forest Products' plan to relocate and redevelop the Kenora sawmill over the next 3.5 years. Completion of the loan facility is subject to due diligence and negotiation of binding agreements.
If completed, GreenFirst Forest Products would be able to draw down on the loan facility to cover 20% of its eligible project expenditures provided that the Company meets certain performance parameters including but not limited to job-creation targets and other project milestones.
This strategic relocation would open the necessary expansion opportunities to ensure the mill is viable and sustainable. The Company has identified potential locations for a new mill site within the City of Kenora. In doing so, the company would keep jobs in Kenora and could encourage full-time residents to move back to Kenora. All production from the relocated Kenora sawmill is expected to supply the Canadian market as well as the export market in the United Kingdom.
The Company purchased the sawmill out of receivership on October 5, 2020. GreenFirst owns the facility and associated assets, which include 114 acres of land on the shores of the Lake of the Woods. The present site has limitations for sawmill development, and it is beneficial for the Company to relocate.
GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production. The Company owns 7 sawmills and 1 paper mill across Ontario and Quebec, Canada.
