Apr 08, 2013. /Lesprom Network/. Nova Scotia is giving Northern Pulp more than $20 million in loans and refinancing to upgrade their mill. Provincial loans, along with $5 million from the company, will allow Northern Pulp to implement new environmental technology sooner to significantly reduce air particulates, and make other capital improvements on the more than 40-year-old mill, as the government of Nova Scotia said in a press release received by Lesprom Network.

The new equipment, costing $12 million, more effectively removes particles from flue gas.

Northern Pulp will also spend $10.2 million to build a state-of-the-art wood-chip plant to improve supply-chain efficiency, reduce operating costs and create 20 new jobs.

These projects will help save the company $9 million annually.

The province is providing Northern Pulp Nova Scotia Corporation a $14.7-million repayable loan and a $2.5-million forgivable loan, contingent on installing the new equipment and reaching employment and wage targets. The province has also agreed to refinance $5.4 million of a repayable loan from 2009.

Northern Pulp produces northern bleached softwood kraft, which is mainly made in Canada and the Nordic countries. It has longer and stronger fibre lengths and diameters than anywhere else in the world, making it a critical ingredient for products such as toilet paper, napkins, paper towels, adult and child diapers, packaging materials, printing paper and newsprint.