India's Aditya Birla Group buying Terrace Bay Pulp

A company from Mumbai, India has stepped forward to purchase an idled pulp mill in northwestern Ontario.

It was announced Thursday that the Aditya Birla Group plans to take over Terrace Bay Pulp. The mill has been shut down since late last year. Earlier this year went under protection from creditors.

The purchase agreement is subject to court approval.

Aditya Birla plans to invest more than $250 million to convert the mill for the production of rayon fibre.

The conversion process will take about two years, but at least some of the 275 mill workers should be back on the job by October.