The seven-year facility will provide liquidity as the lumber producer plans to restore two-shift operations.
SDM
The Ashland Sawmill project is expected to create and retain the equivalent of 220 permanent full-time jobs.
Production centralises to Oulu, Oulainen, and Kalajoki sawmills as log costs pressure profitability.
The mill will start at 80 million board feet annually and reach 108 million board feet at full capacity.
Change negotiations begin in week 37 as pulp market remains challenging.
The planned closure will remove about 110 thousand m3 of annual lumber production.
The funding will support wood-product processing, innovation, workforce development, plantations and timber import compliance.
The mill, formerly operated by Domtar, was idled in 2024 after the company announced plans to close the facility.
Projects in Chapleau and other northern communities will modernize mills, expand biomass use and maintain bioenergy operations.
The site makes solid-wood interior products for DIY retailers, with Leroy Merlin previously accounting for 92% of its production.
The Swedish company described current business conditions as the worst in 30 years.
The company attributed the insolvency to delays at a new production facility and plans to seek an investor while reducing operations to one shift.
The modeled expansion would also increase the role of lumber suppliers, with dimension lumber the largest intermediate input.
Former CEO Hicham Abel departs; currently Chief Restructuring Officer to lead management board.
Staufer will oversee sales, order processing, production and after-sales, with a focus on international markets and customer service.
The company aims to improve profitability, speed up decision-making and consolidate its Nordic supply chain.
Production to shift to Oulu and Kalajoki sawmills as change negotiations cover 60 employees.
Chris Walton succeeds Interim CEO Steve Zika after 30 years of leadership roles at the company.
Former Finnair and Outokumpu CFO joins Executive Leadership Team by January 2027.
Pulp, Energy and Circularity business area leader leaves after nine-year tenure in executive roles.