Chinese company buys into Port Alice's Neucel Specialty Cellulose

Zhejian Fulida Ltd., China's largest producer of rayon fibre, has bought an ownership stake in Port Alice's Neucel Specialty Cellulose.

The deal will inject new capital and ownership into the northern Vancouver Island pulp mill. Part of the deal includes a long-term supply agreement.

"Fulida is a new part owner. Our ownership base has changed," said Jim Herculson, Neucel vice-president of finance. "It's also an infusion of capital. We are not going to use it for working capital. It's going to be used entirely to enhance the business."

Neucel Specialty Cellulose is the largest employer on northern Vancouver Island, employing 400 people. The company is considered a success story in the area. The mill was salvaged from bankruptcy after being sold, stripped of equipment and re-sold after the Doman Industries failure. As Neucel Specialty Cellulose, the mill has survived the market downturn, and the company is profitable. It is owned by a consortium of investors led by two U.S. financiers, Wellspring Capital Management and the Granite Street Capital Group.

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Chinese buy a stake in Vancouver Island pulp mill (The Vancouver Sun)