Don Downe says he had hoped that Montreal-based Resolute Forest Products Ltd. would sell the facility as a going concern.
The company revealed its decision to start moving equipment out of the building in a letter received by of Municipality of Lunenburg on Tuesday.
The mill just outside of Bridgewater, N.S., had employed over 125 people, but it closed earlier this year when Resolute shut down its Bowater-Mersey paper mill and other operations.
The mill was not included in the deal announced last week between the owner of Bowater's assets in Nova Scotia and the provincial government.
Resolute Forest Products was unavailable for comment.