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  • Northern Pulp to Purchase Land

    2010 - 03.15

    Neenah Paper is selling all of its remaining woodlands in Nova Scotia for $82.5 million to Northern Pulp and Nova Scotia is loaning $75 million to help Northern Pulp purchase the 475,000 acres of land.

    The land will ensure a wood supply to the Abercrombie, Pictou Co. a pulp mill as well as protect the land as a forestry asset. In total the forest industry contributes $700 million to Nova Scotia’s gross domestic product and employs about 11,000 people as well as exporting more than $1 billion, which makes up 17% of Nova Scotia’s export trade. Within this Northern Pulp is a major player within the province’s forestry and paper industry.

    It has also been confirmed that the province will also invest $16.5 million to purchase 55,000 acres of the land Northern Pulp is buying. Already the majority of it has been earmarked for protection in Cumberland, Colchester, Pictou, Halifax, Hants and Guysborough counties.

    “This purchase includes some exceptional natural land for protection at an excellent price and will help us move toward our goal of protecting 12 per cent of the province’s land mass by 2015,” said John MacDonell, Minister of Natural Resources.

    The province was purchased well below market value at $300 per acre. This investment will also allow Northern Pulp to invest $5 million to reduce the odour in the community surrounding the Abercrombie mill.

    The Northern Pulp loan funding will come from the province’s Industrial Expansion Fund, which was budgeted for in September 2009.

    These transactions are consistent with the 2006 Softwood Lumber Agreement. None of the parties involved, Northern Pulp, Northern Timber, nor Neenah Paper, own or operate sawmills, nor are they related to softwood lumber producers.

    The Timber Investment Blog is sponsored by Greenwood Management. For more information on investing in Forestry please click here

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