Paper Excellence signs co-location agreement with One Sky Forest Products for Prince Albert mill

Paper Excellence and One Sky Forest Products have signed a non-binding co-location agreement that will see One Sky operate its new oriented strand board (OSB) on the existing Prince Albert mill site.

The agreement means One Sky will occupy roughly 10 per cent of the existing property. The two companies will share log storage areas and electrical, natural gas, and rail infrastructure.

“We are very pleased to co-locate with Paper Excellence,” One Sky chairman Brian Fehr said in a media release. “This partnership is another indication of the growing strength of the Saskatchewan forest industry, and an important milestone in progressing our new OSB facility in Prince Albert.”

Both One Sky and Paper Excellence have received softwood and hardwood fibre allocations from the Government of Saskatchewan.

Carlo Dal Monte, Paper Excellence’s vice president of energy, business and development, said they were pleased with the agreement, and eager to move forward.

“As we continue to work towards restarting Prince Albert Pulp Inc, this agreement is an example of how important co-operation and collaboration is to both the forest industry and to Saskatchewan’s economic growth overall.”

Paper Excellence is a B.C.-based manufacturer of pulp and specialty printing, writing, and packaging papers. The company operates seven mills and a large-scale cargo distribution centre.

One Sky Forest Products Ltd. Is a privately held Saskatchewan corporation created to operate the One Sky OSB plant in Prince Albert. It includes a number of local investors, such as Montreal Lake Business Ventures, Meadow Lake Tribal Council, Big River First Nation, and Wahpeton Dakota Developments.

Paper Excellence also announced the successful closing of its previously announced acquisition of fibre-based products provider Domtar.

“Today marks a major milestone in the growth of the Paper Excellence Group,” said Joe Ragan, Paper Excellence’s Global Chief Financial Officer. “We are excited to welcome Domtar and its impressive team to the Paper Excellence family.”

Domtar will operate as a stand-alone business entity within the Paper Excellence Group. Domtar’s current CEO and management team will remain in place with no further changes to operating locations, business plans, or Domtar’s employee base.

Paper Excellence purchased the Prince Albert mill from Domtar roughly 10 years ago and signed a 10-year non-compete clause. They announced their intention to buy Domtar for roughly $3-million last May.