HARMAC SOLD TO ASIAN PULP AND PAPER

FUTURE OF HARMAC
STILL IN DOUBT

It is reported in the local press that Asian Pulp and Paper is now the new owner of Harmac pulp mill. The sale which still has to be approved by the bankruptcy courts results from the only offer, Pope and Talbot received which includes it's mills in Oregon and MacKenzie BC.

It is estimated by some analysts that the aging mill could require a $100 million dollar upgrade to make it profitable. The Asian company paid $40 million for the MacKenzie mill and $50 million for the Oregon mill, and $10 million for Harmac. Whether the investment in Harmac will materialize is only speculation at this point but seems unlikely.
An industry analyst is quoted saying that those in the industry, familiar with Harmac expect it would operate for no more than another two years without a major investment in upgrades.

Editors comment: If the city of Nanaimo wants to go into another $100 million business, perhaps they should consider purchasing and upgrading Harmac. The financial return to the city perhaps could equal or exceed the benefit the new convention center offers.