The total project cost is $25 million, a substantial portion of which is being funded from proceeds of insurance related to a fire.
The mill remains shut down after it was destroyed by fire last January.
To date, the Company has received $23.7 million of insurance proceeds, $13,7 million related to business interruption and $10 million for damage or destruction of assets.
In a Dec. 12 news release, the company reports Eacom has also completed its capital project on the sawline at the Elk Lake facility. The mill has been restarted and expected to operate at full production in January 2013.
“We are continuing our capital expenditure program designed to increase productivity and capacity at our mills to reduce manufacturing costs," said company president-CEO Rick Doman in a statement. "The rebuild of
Timmins has also been designed to provide for improved productivity. Lumber markets have improved and continue to contribute to the overall performance of the company”
Eacom Timber owns sawmills in Timmins, Nairn Centre, Gogama, Elk lake and Ear Falls, and owns a 50 per cent stake in an "I" joist plant in Sault Ste. Marie.