Canadian Manufacturing

Fortress Paper selling Quebec pulp mill, saw mill

The $15.4-million deal involves buildings, equipment and property at the mill site in Lebel-Sur-Quevillon



VANCOUVER—Fortress Paper Ltd. has agreed to sell the assets of an idled pulp mill and saw mill in Quebec for $15.4 million.

The buyers are subsidiaries of Nexolia Bioenergy Inc., a private company focused on investing in natural resources, renewable energy and other projects.

Nexolia will be acquring the buildings, equipment and property at the mill site in Lebel-Sur-Quevillon, 620 kilometres northwest of Montreal.

The transaction is expected to close by July 8.

Vancouver-based Fortress says the sale of the LSQ Mill will release the company from a number of future obligations.

Fortress says the buyer will assume responsibility for paying property taxes. Fortress will also assign a $7-million secured note it receives to Investissement Quebec

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