Canada's insolvent pulp manufacturer Northern Pulp Nova Scotia Corporation, a Paper Excellence (Domtar) subsidiary, has cancelled its plans to build a CAD2.7bn bleached softwood pulp mill in Liverpool, Nova Scotia, according to Euwid.
The move follows the completion of a feasibility study founding that the project would fail to meet the 14 per cent internal rate of return IRR required under a 2024 settlement with the provincial government of Nova Scotia.
Northern Pulp will now initiate a court-supervised sales process of its assets.
Northern Pulp has been under creditor protection since June 2020 after it closed its kraft pulp mill in Pictou County, eliminating 300 jobs.
The government ordered the closure after Northern Pulp failed to meet the province's environmental requirements for a new effluent treatment plant.
According to CBC, the company's most significant asset is 192,000 hectares of timberland in Nova Scotia.
