Alberta-Pacific Forest Industries Inc. (Al-Pac) may soon be under new ownership.
Employees at North America’s largest single-line kraft pulp mill were informed last week that the mill’s current majority shareholder, Tokyo-based Mitsubishi Corporation, is contemplating selling the Alberta asset.
“Mitsubishi has launched a sale process, and it’s done that because Al-Pac no longer fits its strategic vision,” said Al-Pac spokesperson Mike Voisin. “We don’t know yet who the buyer will be.”
Mitsubishi Corporation’s ownership share of Al-Pac is 70 per cent; Japan’s Oji Paper owns the rest.
Voisin said Mitsubishi Corporation’s move has nothing to do with the mill’s profits or productivity, saying, “I think it’s very important to know that Al-Pac’s a very robust business.”
He characterized the mill as a modern and efficient facility.
“It’s possible that there may not even be a sale, and if that’s the case, Mitsubishi will continue to hold the asset and keep it operable,” said Voisin.
Yukio Shinano with Mitsubishi Corporation’s communications department also stressed that a sale is far from certain.
“The option of offering our share of Al-Pac Forest Products Inc. for sale has come up for discussion internally,” Shinano stated in an email. “However, Mitsubishi Corporation (MC) has not made any decision regarding the sale of Al-Pac. Any such considerations need to be studied carefully, and with a view to ensuring the continued growth of both Al-Pac and MC.”
The possibility of a sale is strong enough that all staff members were informed of the situation last Tuesday.
“We had employee meetings throughout the mill, so everybody was well aware,” said Voisin.
“It’s really too soon to predict specific outcomes. It’s like putting up a house for sale. They’ve started their process right now; they’ll go business to business trying to sell the asset,” he said.
Al-Pac, which began operations in 1993, has been recognized by The Globe and Mail and Mediacorp Canada as being one of Canada’s top employers in general and for young people.
