Shuttered Espanola Mill May Have a Buyer in BMI Group
BMI Group, a prominent Northern Ontario brownfield redeveloper, is in the process of acquiring the shuttered Espanola pulp and paper mill from Domtar. This move marks a significant step in the revitalization of the region’s industrial landscape.
In a recent announcement, BMI disclosed that its subsidiary, Bioveld North, has signed an asset purchase agreement to acquire the former pulp and paper mill. This location ceased operations in 2023, leaving a void in the community’s industrial sector.
The completion of the transaction is pending customary regulatory approvals. While the specific purchase price has not been disclosed, the acquisition is a notable development for both BMI Group and the Town of Espanola, highlighting potential future growth and redevelopment efforts.
A key aspect of the mill assets includes a 16-megawatt hydroelectric generating plant and dam that supplies electricity to the provincial power grid. BMI has expressed plans to invest in these energy assets to extend their operational lifespan, indicating a commitment to sustainable energy practices.
Paul Veldman, CEO of BMI Group, expressed eagerness to collaborate with local stakeholders, including the Town of Espanola, neighboring Anishinabek communities, and both federal and provincial governments. “We look forward to realizing the competitive advantages of this remarkable region,” he stated, emphasizing a collective vision for future development.
Previously, the mill was a significant employer in the area, with about 450 staff members. Currently, a skeleton crew of 32 people maintains the site. Veldman acknowledged the critical role these skilled individuals will play in shaping what comes next for the site.
BMI Group, under the leadership of the Veldman brothers—John, Justus, and Paul—is renowned for its expertise in real estate development and the revitalization of old industrial and commercial properties. The company’s activities prominently focus on adaptive reuse and repurposing strategies, reflecting their commitment to sustainable development.
The Veldmans’ reach extends across Ontario, where their portfolio includes former Resolute paper mill sites in Iroquois Falls and Fort Frances, and the Norampac cardboard plant in Red Rock. Additionally, BMI expanded last year by acquiring a closed Domtar paper mill in Port Huron, Michigan, and another mill in Baie Comeau, Quebec.
A particularly significant focus for BMI is Red Rock, a former paper mill town on the north shore of Lake Superior. There, BMI has initiated community development plans, including upgrading the local housing stock and revitalizing the harbor area. These efforts are being conducted in collaboration with the Red Rock Indian Band and a mining company to potentially establish a lithium refinery on the mill’s former site.
BMI’s impact is notably visible, as evidenced by their success in attracting Asahi Kasei, a Japanese electric vehicle battery supplier, to build a $1.6-billion lithium-ion battery separator plant on one of their properties in Port Colborne on the Niagara Peninsula. This development underlines BMI’s strategic approach in converting dormant sites into industrial powerhouses that align with modern economic demands.
Further showcasing BMI’s achievements, the company earned an industry award for effectively repurposing a former Thorold mill into a multi-modal facility—illustrating their capability to transform underutilized properties into vibrant economic hubs.
The acquisition of the Espanola mill signals another transformative opportunity for BMI to bring their innovative revitalization strategies to the fore, promising not only economic growth but also community rejuvenation in Northern Ontario.
