BMI Group eyes forest product potential and job creation at shuttered site
The shuttered Domtar pulp and paper mill in Espanola, Ontario, may soon find new life. BMI Group, an Ontario-based industrial development firm, has announced plans to acquire the site and transform it through its specialized process of “re-futuring” — repurposing idle infrastructure for modern industrial use.
The deal, signed by BMI’s newly formed subsidiary Bioveld North Inc., is pending customary regulatory approvals. Domtar will retain ownership of the mill until the transaction is finalized.
A strategic addition to a growing network
This acquisition expands BMI’s industrial footprint across Ontario and Quebec, creating a northern counterpart to its Bioveld Niagara site in Thorold. The Espanola location will now anchor a multimodal industrial network that stretches from Iroquois Falls to Baie-Comeau, enhancing regional logistics and development capacity.
As part of the agreement, BMI will also acquire the 16MW hydropower plant and dam associated with the site, which currently feeds power into Ontario’s energy grid. The company plans to invest in maintaining and modernizing these assets, reinforcing its commitment to sustainable energy and regional resilience.
‘Putting wood back to work’
While the future mix of activities at the mill has yet to be finalized, BMI Group is actively exploring the potential to reintroduce forest product processing, including biofuels and possibly paper. “We are in discussions with several groups looking at putting the wood back to work,” said BMI CEO Paul Veldman.
Although recreating the 450 jobs lost when the mill closed in 2023 is unlikely, the goal is to create new employment opportunities and help preserve work at local sawmills that once supplied the mill with wood chips. The 32 employees who currently maintain the site will play a key role in the redevelopment process.
“The knowledge and skills of the people here are second to none,” said Veldman. “Their expertise will be critical in shaping the next chapter.”
A collaborative future
BMI emphasizes collaboration with all stakeholders — including the Town of Espanola, Anishinabek communities, and federal and provincial governments — to identify sustainable, high-impact uses for the site’s infrastructure.
Espanola mayor Douglas Gervais welcomed the news, calling it a promising step forward. “Rather than looking at something that’s dead and not going anywhere, this here brings excitement to the community,” he said.
While the full scope of the redevelopment remains to be seen, BMI’s track record — including successful transformations in Sault Ste. Marie, Iroquois Falls, and beyond — suggests a bold and creative future for this storied northern mill.
About BMI Group
BMI Group specializes in transforming strategic properties into dynamic, multi-use developments spanning industrial, commercial, residential, and hospitality sectors. Driven by a collaborative, cross-sector approach, BMI creates new pathways for investment, innovation, and community renewal — unlocking the full social and economic potential of underutilized spaces.
