West Fraser said Thursday it has reached an agreement to sell its shut-down Eurocan site in northern B.C. to Kitimat LNG, a consortium headed by Apache Canada that plans to build a $3-billion liquified natural gas plant in Kitimat.
Kitimat LNG's project also includes a $1.1-billion natural gas pipeline through northern B.C.
No price was disclosed by either party on the sale of Eurocan. Apache Canada said it has made no decision on what will happen to the industrial complex, which produced linerboard used in cardboard, and kraft paper.
"At this point, Kitimat LNG is just going to be assessing our needs, so no decisions have been taken just yet," said Apache Canada spokesperson Andree Morier.
She noted the company has plans to build a work camp and use the site for storage.
West Fraser, which has extensive forest operations throughout northern B.C., shut down the Eurocan plant in early 2010, putting 535 employees of the job.
The company said the 40-year-old Eurocan mill - which produces linerboard used in cardboard and kraft paper - has historically struggled with high costs and negative returns.
Earlier this year, West Fraser entered an agreement to sell its deep sea wharf and related assets to Rio Tinto Alcan. The wharf was part of West Fraser's Eurocan plant.
West Fraser said the latest sale was expected to be completed later in the year.
West Fraser officials could not be reached for comment Thursday.
