Domtar Inc. and Gogama Forest Products Ltd. have formed a 50-50 joint venture to develop a fully integrated sawmill, kiln and planer operation in Northern Ontario.
Gogama Forest Products, a wholly-owned subsidiary of William Day Holdings Ltd. , will contribute the Ostrom Siding sawmill to the new company, while Domtar will contribute a dry kiln and its stud planing line at Nairn Centre. The planing line will be modernized at a cost of $2.6 million.
Company officials expect the new joint-venture company will be well-positioned to maximize fibre utilization of small diametre logs and improve costs competitiveness.
“We are pleased to form a partnership with Day because, as a long-time supplier, we have gained an appreciation of their expertise and know-how,” said Richard Garneau, senior vice-president, Domtar forest products group. “The joint venture will benefit from a fully integrated operation, from forest floor to customer, that will combine Gogama’s sawmill and Domtar’s planer and kiln operations, as well as its distribution network. We have worked our with our Nairn Centre employees to weather difficult times. We have proven that by working together as employees, employers and business partners, we can find creative ways to better our future.