BMI Group Acquires Idled Domtar Pulp and Paper Mill in Espanola, ON

BMI Group, a leading industrial development company, has formed Bioveld North Inc. This strategic subsidiary has signed an asset purchase agreement with Domtar to acquire the former Espanola pulp and paper mill.

The closing of the sale is subject to customary regulatory approvals. Until then, Domtar will retain ownership of the assets.

This acquisition, which establishes a northern counterpart to BMI’s Bioveld Niagara hub in Thorold, marks a new chapter for the industrial site while expanding BMI’s network of industrial multimodal sites across Ontario and Quebec—from Iroquois Falls to Niagara and east to Baie-Comeau on the Atlantic.

The comprehensive agreement includes a 16MW hydropower plant and dam that currently supply Ontario’s power grid. BMI Group will invest in these energy assets to ensure their long-term viability and continued contribution to the region’s sustainable energy resources.

BMI specializes in “ready-stating and re-futuring,” a process that has successfully remobilized idle industrial properties across Ontario, Quebec, and Michigan by retooling valuable infrastructure for new uses.

“We look forward to working closely with the Town of Espanola, neighboring Anishinabek communities, as well as federal and provincial governments to realize the competitive advantages of this remarkable region,” said Paul Veldman, CEO of BMI Group.

The mill, which was indefinitely idled in 2023, employed 450 workers, 32 of whom continue to manage and maintain the site. “The knowledge and skills of the people here are second to none. Their expertise will be critical in shaping the next chapter,” added Veldman.