MEADOW LAKE, Sask. — Plans to build a $220 million oriented strand board mill near Meadow Lake, Sask. will result in 130 spin-off jobs in areas, such as harvesting and trucking.
The new project is a partnership between Crown Investments Corporation (CIC) and Tolko Industries and it is expected to give a giant boost to Saskatchewan’s forestry industry.
“We are pleased to have signed the partnership agreement for this project which we announced in principle in June,” says CIC Minister, Maynard Sonntag. “Under terms of the agreement, Tolko will own 75 per cent of the mill and will build and operate the plant. CIC will own the remaining 25 per cent and will invest $27.5 million and provide a loan guarantee of $27.5 million.”
The mill will be capable of producing 600 million sq. ft. of oriented strand board per year. The products will be used to create sheathing products, flooring and stair tread.
“There’s growing demand for high quality oriented strand board products, especially in North America, so we expect this mill to provide a good return on our investment over time,” Sonntag adds.
Construction on the mill will begin this spring.
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