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Buyers Sniffing Around Abitibi-Bowater Assets in Mackenzie

By 250 News

Thursday, January 15, 2009 04:04 AM

Mackenzie, B.C. -   There is a possibility the Abitibi-Bowater holdings in Mackenzie could be sold. “There have been some serious candidates looking at the possibility of buying those assets” says Minister of Forest and Range, Pat Bell.
The interested parties are not just “tire kickers” says Bell. “The thing about the properties is that people are missing the point about the no compete clause” says Bell. It has been generally understood that while the mill could be sold, it was not to be fired up to produce the same product, that would be in direct competition with Abitibi-Bowater’s current operations elsewhere. 
Bell says the mill could produce the same product, but the customers can’t be in North America. “So there is nothing stopping sales of paper to, for example, China.”
Bell says there are some serious purchasers looking at the saw mill and pulp and paper plant but he doesn’t expect a deal to be wrapped up until later this year “I think we can expect some news, maybe two months down the road.”
Abitibi-Bowater has indicated that while it is not actively looking for a buyer, the assets would be sold if the  right offer was made.
Hundreds of people in Mackenzie lost their jobs when Abitibi-Bowater closed its operations there.

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Posted on Thursday, January 15, 2009 04:04 AM in News by 250 News

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Comments

Comment Posted by: Mercenary on January 15 2009 7:31 AM
Yea. I'll believe that when I see it. Abitibi doesn't sell stuff. They buy things to shut them down. I would think with their stock being in the crapper then whole company would be up for grabs.
Comment Posted by: Shellshadow on January 15 2009 8:43 AM
Oh I hope this comes to pass for the people of this town which was hit hardest of all through all this mess. I will include this into my prayers. :)
Comment Posted by: He speaks on January 15 2009 8:49 AM
Well, you know what. I think Pat Bell, better put some pressure on Abitibi, on the no competition crap. Because as soon as they did that, than they made the trees under there licence worthless. That is our stumpage money.
Comment Posted by: try me on January 15 2009 8:59 AM
good morning
maybe if the interested party knew that the people of mackenzie were interested in being partners with them by investing some of their own money,it wold make it more attractive to that company
Comment Posted by: Eagleone on January 15 2009 9:21 AM
So he is planning to sell the assets to the Chinese....
Comment Posted by: jus cuz i can on January 15 2009 9:26 AM
Just a thought:
Why can't the government help the Mcleod Lake Indian Band purchase any one of the mills in Mackenzie? Or McLeod Lake could invest in a partnership? (not with the government, another private partner) When the market turns around (hopefully soon) this would offer employment for the Band and the people of Mackenzie.
Another thing, it's not only the millworkers that are affected by this downturn, don't forget about the guys in the bush.
Comment Posted by: Jem on January 15 2009 9:41 AM
Well if the mill does get sold I sure hope they won't hire Wayne Lewis to run it again that would be a big mistake.
Comment Posted by: furtree on January 15 2009 1:18 PM
HELLO!!!ITS A pre election Strategy.
BELL'S OWN WORDS
“I think we can expect some news, maybe two months down the road.”
Comment Posted by: woodwoman on January 15 2009 2:01 PM
If you attended the rally to save Mackenzie you would have heard Pat Bell mention "" yes, I expect great things in a few months for Mackenzie - the plans are in the works. Well , in a few months,the Liberals will be out in full force telling everyone all the great things happening - even in Mackenzie - time to wake up and smell the coffee - what Pat says and does is two things.
Oh yes, let us work with China - it is worth at least 6 or more trips for him!!
Comment Posted by: Workwanted on January 15 2009 3:59 PM
All I can say is that I do hope that Abitibi sells the Mackenzie operations. We, the people of Mackenzie, need a mill here to run so that the whole town will not close. If you think about it, with out the mills running, how long before the other small retail stores start too close. Lets all just hope that it gets sold and re-opened.
Comment Posted by: Palopu on January 15 2009 9:26 PM
There is no longer a big market for Newsprint either in North America or elsewhere, and that is one reason for the Newsprint mill shutting down. The Pulp market is in the tank. Prices have dropped significantly in the last 4/5 months and there is a huge surplus of pulp in storage world wide. I wouldnt expect the pulp market to turn around anytime soon.

Lumber markets could turn around sometime in the latter part of 2009 or mid 2010, however with all the capacity BC has for producing lumber, and the fact that mills can go from one, to two, to three shifts, will make it hard for some lumber mills to get back into the business.

It is becoming more obvious every day that we are in a serious recession, and I woulndt expect any good news in the short term.

I agree that Bell will make the appropriate noises between now and the election in May, to try to ensure that he, and his cohorts get re=elected.