Provincial support advances the engineering behind the company's goal of bringing the idled mill back to life and restoring forestry jobs across the region

ESPANOLA, ON, Sept. 3, 2026 /CNW/ -- Bioveld North Inc., a subsidiary of the Canadian-owned BMI Group, today welcomed a $5.1-million investment from the Government of Ontario that advances its plans to restart the historic Espanola pulp mill, idled since 2023. Delivered through the Biomass Pathways Stream and Innovative Bioproduct Manufacturing and Modernization Stream of Ontario's Forest Biomass Program, the funding supports the front-end loading engineering and design (FEL) that will finalize the design and cost of the restart. Bioveld North is contributing $5.4 million to the $10.5-million engineering program.

The company said the investment is an important step toward its goal of returning the mill to production and re-establishing Espanola as an anchor of the regional forestry economy. Bioveld North's investors, including Dutch firm Business EQ Investments, are proud to support the next generation of forestry innovation in Canada. Bioveld North is not yet setting a timeline and will have more to say as the engineering advances and the remaining pieces come together.

For more than a century, the Espanola mill was an economic cornerstone of Northern Ontario. Its idling in 2023 cut roughly 400 direct jobs and disrupted a regional supply chain that historically supported an estimated 2,000 additional jobs across 19 Ontario sawmills, six of which relied on Espanola for approximately 75 per cent of their wood-chip sales. With no domestic outlet, several sawmills have been idled, and most remaining residual fibre is now shipped out of province, weakening Ontario's forestry value chain at a time of mounting trade pressure.

The feasibility study for the restart explores returning the mill to approximately 800 air-dried metric tonnes per day of premium talc-free Northern Bleached Softwood Kraft (NBSK) pulp and about 180 short tonnes per day of paper for medical and food grades, with capacity to expand over time. It is the first phase of Pulp+, Bioveld North's plan to develop the site into an integrated forest bioproducts hub, adding biocarbon, renewable fuels and clean power through phased private investment.

Bioveld North acquired the former Domtar site in late 2025. Restoring domestic production of specialty pulp grades that Canada now imports would strengthen supply-chain security amid sustained tariff pressure on Canada's forest products and would demonstrate a Canadian-owned company rebuilding capacity that multinationals left behind. A successful restart will require substantial private and customer investment alongside government support.

In the months ahead, the company will work closely with mill workers, the sawmills that depend on the site, the Town of Espanola and local First Nations to build the foundation for a successful restart. Bioveld North said this groundwork, with the community and its partners, is its immediate priority.

Ontario's early-stage investment comes as the federal government has released its Forest Sector Action Plan, which identifies regional mills and bioeconomy projects as priorities for support. Bioveld North said it will continue to engage federal, provincial and private partners as it advances the project.

Quotes

"This mill was never torn down or left to rot - it was kept warm, waiting. Too much was left here for us not to look at it closely and meticulously, and Ontario's investment makes that possible. Our whole business is built on a simple idea - put wood back to work. Through our Pulp+ approach, we see Espanola capturing the full value of one of the richest forest regions in the country: premium pulp and specialty papers first, then biocarbon, renewable fuels and clean power. This mill ran for more than a century. I'd like my great-grandchildren to be able to say it ran for a century more."

– Paul Veldman, CEO, The BMI Group

"The people here know this mill better than anyone - the workers who ran it, the sawmills that fed it, the families built around it. Our job right now is to do the groundwork with them and to do it right. This funding gives us the means to do exactly that, so that when this mill comes back, it comes back to stay."

– Ryan Anderson, General Manager, Bioveld North

"This mill has been at the heart of Espanola for generations, and its idling was felt across our whole community. Today's funding commitment from the Province of Ontario is a vote of confidence in our town's future - and in the work that Bioveld North is advancing towards a restart. A reopened mill means good jobs and families staying in Espanola. On behalf of Council and our residents, we look forward to ongoing collaboration with our government partners and Bioveld North to bring this mill back."

– Douglas Gervais, Mayor of Espanola.

"Unifor Local 74 welcomes today's news on Provincial support for the engineering work needed to restart the mill. The prospect of a reopening offers Unifor National, Local 74, and the community renewed hope.

Unifor National and Local 74 remain fully committed to working with everyone to see this through to a successful restart. Our hope is to see a long-term, sustainable future secured for our members, their families and the community."

– Wendy Fensom, Local 74 President

"Since the mill went quiet in 2023, our members have held onto the hope of returning to work. News that a feasibility study is underway to modernize and restart the operation is an encouraging sign. The members of I.B.EW Local 956 know this mill - the skills and experience to run it are still here in Espanola, ready to go the day a decision is made. We'll support any credible effort to reopen it, and we'll be a committed partner to the investors, governments, and community leaders working to make that happen."

– Todd Tessier, Local 956 President

Quick Facts

• Ontario is investing $5.1 million through the Biomass Pathways Stream and the Innovative Bioproduct Manufacturing and Modernization Stream of the Forest Biomass Program.
• The funding supports a $10.5-million front-end loading engineering and design program; Bioveld North is contributing $5.4 million.
• The engineering will finalize the design and cost of the restart; Bioveld North intends to restart the mill and will confirm timing as the work advances.
• The Espanola mill operated for more than 120 years before being idled in 2023.
• The mill and its supply chain historically supported roughly 400 direct jobs, an estimated 2,000 additional jobs, and 19 regional sawmills.
• The restart would return the mill to approximately 800 air-dried metric tonnes of pulp per day, including premium talc-free NBSK, and about 180 tonnes per day of specialty paper.

About Bioveld North and The BMI Group

Bioveld North Inc. is a wholly owned subsidiary of The BMI Group, a Canadian development and investment firm that specializes in acquiring and revitalizing strategic industrial assets. BMI acquired the former Domtar site in Espanola in late 2025 and brings mill-restart experience from projects in Port Huron, Michigan and the Niagara region. Its Pulp+ concept is designed to retool legacy forestry infrastructure into diversified, lower carbon bioproduct platforms anchored by Canadian ownership and partnership with local communities and First Nations.

To learn more about Bioveld North please visit: https://www.thebmigroup.ca/portfolio/bioveld-north

SOURCE BMI Group