"We are very pleased with this agreement and feel it is clearly in the best interest of our employees, shareholders, customers and local communities, as well as a positive development for the forest products industry in Northern Ontario," said Sean Erwin, chairman and chief executive officer of Neenah Paper. "Following the mill shutdown in February, we had recently reached the difficult decision to permanently close the mill and woodlands. Instead, as part of this agreement we will provide funds to Buchanan that would have been required to close the facilities and which can now be used to help make the operation successful. Buchanan Forest Products has a long history and knowledge of Ontario forestry operations and is in the best position to properly manage the wood flow to gain the highest value from the fiber while assuring an efficient source of wood for the mill. This type of business model is critical for success in the Canadian forest products industry."
Ken Buchanan, chairman of Buchanan Forest Products, stated, "the acquisition should improve the present state of the forest industry in Northern and Northwestern Ontario and remove the uncertainty that currently hangs over the communities connected with the forest industry." In addition to the successful completion of employee relations efforts, Buchanan will be working with the governments of Ontario and Canada and others to finalize arrangements required to help the forest products industry survive.