The project for a new pulp mill in Liverpool, Nova Scotia, has its roots in the agreement between Paper Excellence and the provincial government following the closure of the Northern Pulp mill in 2020.
This settlement agreement, which resulted in a $450 million lawsuit, stipulated that Paper Excellence would explore the possibility of launching a new project in the region. Today, Domtar, following the integration of Paper Excellence and Resolute Forest Products in October 2024, is about to finalize its feasibility study for this new plant.
The public announcement of the project is expected in the first quarter of 2025, ahead of a court hearing scheduled for March. The project will depend on a 14% return on investment over 20 years, in accordance with the settlement agreement approved by the court in May 2024. Domtar's feasibility study assesses key elements such as construction costs, wood prices, operating expenses and market potential for pulp and other bioproducts. These elements will determine whether the project can move forward.
Natural Resources Minister Tory Rushton highlighted the potential economic benefits of the project, which could create construction jobs and sustainable positions in the forestry sector. It would also allow for the valorization of lower-quality wood and chips, thus supporting the local supply chain.
The project is in line with provincial objectives to support resource development and create economic opportunities across Nova Scotia. A final decision, based on the feasibility study, is expected to be made in early 2025.
Local reaction to the project is divided, with some raising environmental concerns, while others see this initiative as a crucial way to boost the local economy.
According to some experts, if the project goes ahead, it would mark the first creation of a new market pulp mill in North America in decades.
Domtar is a major privately held company that manufactures various forest products and employs some 14,000 people in more than 60 facilities across North America. The company has an annual production capacity of 9.1 million metric tons of pulp, paper, packaging and tissue paper and approximately 3 billion board feet of lumber and other wood products. Formerly known as Paper Excellence Group, Domtar includes the former Paper Excellence, Domtar and Resolute Forest Products businesses.
