A year and a half after Domtar shut down its pulp and paper mill in Espanola, Ontario—eliminating 450 jobs—a property redevelopment company has stepped in with plans to breathe new life into the site.
On Thursday, Tillsonburg-based BMI Group announced its acquisition of the idled facility. Domtar confirmed the sale, noting it remains subject to “customary regulatory approvals.”
Domtar ceased operations at the Espanola mill in November 2023, citing “years of ongoing operating losses and high costs associated with maintaining and operating” the plant. Despite the closure, 32 employees have remained on-site to manage and maintain the property.
BMI Group, known for retooling and repurposing industrial infrastructure, says it’s ready to begin “re-futuring” the Espanola mill—transforming the historic facility for new, productive uses. The company has carried out similar redevelopments across Ontario, Quebec, and Michigan, including the former St. Marys paper mill in Sault Ste. Marie and the Abitibi mill in Iroquois Falls.
Strategic Location, Forestry Focus
Paul Veldman, BMI’s CEO and one of three brothers who own the company, said the group was drawn to Espanola by its “picturesque” location on the Spanish River and the mill’s “significant square footage.” While plans are still being finalized, Veldman confirmed a strong interest in continuing forest product processing at the site, potentially including paper production or next-generation biofuels.
“We’re already in active discussions with several groups focused on putting wood back to work,” said Veldman. He acknowledged it would be “ambitious” to aim for a full restoration of the 450 jobs lost, but emphasized the goal of job creation and supporting nearby sawmills that once supplied wood chips to the plant.
The site, like many legacy industrial properties, comes with environmental challenges, including an on-site landfill. BMI intends to work closely with the province on an approved closure plan.
Community Optimism
Espanola Mayor Douglas Gervais welcomed the news, calling it “excellent” for the community. He noted that BMI introduced themselves to the town last month, expressing a vision of attracting multiple businesses to the site. However, it remains unclear if pulp and paper production will resume.
“They did not specify whether they were going to bring that back,” said Gervais. “But this brings a sense of hope. Rather than staring at a shuttered facility, we’re looking at the potential for new life and economic opportunity.”