UPM finalizes sale of N.B. mills to Norwegian company

Finnish forestry giant UPM has confirmed the sale of its former paper mill in Miramichi and its other New Brunswick assets to Umoe Solar of Norway.

The sale with the Norwegian solar company was confirmed in a Thursday news release issued by UPM. The deal also includes Miramichi's groundwood pulp mill as well as sawmills in Bathurst and Blackville.

UPM and Umoe Solar Inc., which has interests in bioethanol and solar energy, have agreed not to release the sale price.

UPM, which was the northern city's largest employer, closed in December 2007, leaving more than 500 people out of work in a community that has been dealt several economic blows in recent years.

In a statement issued on Thursday, UPM credited the New Brunswick government for helping facilitate the sale of the Miramichi mill.

"We appreciate the support and understanding of the community and government during UPM's time in New Brunswick, and we are pleased to see new hope for all with the sale," said the Miramichi mill's general manager Timo Suutarla in the statement.

Oystein Oyehaug, the president and chief executive officer of Umoe Solar, said last week that the Miramichi site will not operate as a paper mill.

"We are looking into the renewable energy space as the new focus area," Oyehaug said.

"We have built up activities in Brazil. And it will hopefully be within that range of activities that we will do something here."