June 19, 2013, TERRACE BAY, ONTARIO â€“ AV Terrace Bay Inc. and Pays Plat First Nation have announced a three-year business to business arrangement that will create jobs and significantly promote the economic development of the small northwestern Ontario community. This deal will see Pays Plat, (through their economic development company â€“ Smoke Signals) harvest, process and deliver timber from southern portions of the Kenogami Forest to AV Terrace Bayâ€™s nearby pulp facility.
â€œThis operation will look after harvesting the timber, delivering it to the mill and everything in-between. It will be owned and operated by First Nations peoples. It will promote the economic development of our community and enhance the job opportunities within the communities including practical on the job training. It will create many greatly needed jobs for the skilled and capable workforce in our community and will be an opportunity to develop even more skilled workers through hands-on training on the jobâ€ said Chief Xavier Thompson.
In addition to these forest operations, Pays Plat has also secured a contract with AV Terrace Bay to conduct many of the road maintenance activities around their harvest areas and around their community.
â€œThis agreement is a perfect example of how doing business in Northern Ontario brings benefits to both a company and to surrounding communities. I am incredibly impressed with both the Pays Plat First Nation, for the hard work and preparation theyâ€™ve done to ensure they were ready in every sense for this business opportunity, and with AV Terrace Bay, who have shown tremendous leadership in their commitment to Northerners. Building a strong Northern economy is all about working together in ways just like this. I congratulate Pays Plat Chief Xavier Thompson and his community as well as the management team at Birla for making this happen, and am absolutely delighted to be part of todayâ€™s signing ceremony.â€ â€“ Michael Gravelle, MPP Thunder Bay-Superior North
AV Terrace Bay CEO Giovanni Iadeluca rightly vaunts of this deal and others like it that his team has struck. â€œThe Aditya Birla Group is dedicated and committed to community development and supporting local agencies on every corner of the globe on which it operates. At AV Terrace Bay we recognize the significance of building strong, long-lasting business relationships that are mutually beneficial; our sustainable success depends on them. Our mill has a great track record in its short history of building business to business relationships with local Aboriginal communities. We are delighted to partner with Chief Thompson and the Pays Plat community of which he is the leader. Pierre Pelletier was of great assistance to AV Terrace Bay in facilitating this deal and deserves mention and my appreciation. We look forward to a long term partnership with Pays Plat and all of the other communities and businesses we are involved with.â€
AV Terrace Bay, a subsidiary of the Aditya Birla Corporation purchased the financially troubled pulp facility in Terrace Bay last July. It was restarted in October 2012 and over $25 million dollars has already been invested in upgrades and repairs. The mill will be converted to high-quality dissolving grade pulp, used in the production of rayon fabric, over the next few years, at an expected investment of over $250 million.
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