BUSINESS

Resolute Forest plans $50-million project to build saw mill in N.W. Ontario

01/31/2013 01:03 EST | Updated 04/02/2013 05:12 EDT
MONTREAL - Resolute Forest Products (TSX:RFP) says it's going to build a new saw mill in the Atikokan area of northwestern Ontario.

Once completed, the operation will employ about 90 people directly and others indirectly.

Resolute said Thursday that a site for the mill will be chosen within weeks.

Construction is to begin this spring and completion is targeted for early next year.

The Montreal-based company, formerly called AbitibBowater, estimates the project will cost $50 million.

"We believe in our solid wood business and we're taking action to grow and improve it," Resolute president and CEO Richard Garneau said in a statement.

Besides producing lumber, the mill will also supply chips to the company's pulp and paper operations in Thunder Bay, Ont.