Buffalo Rail & Infrastructure has Acquired Taylor Pulp Assets from Canfor for $7 Million

March 22, 2024 - Buffalo Rail & Infrastructure Corp. ("Buffalo") on March 19 announced its $7 million acquisition of Canfor Pulp Products' recently discontinued pulp mill assets, including 300+ acres of heavy industrial land, in Taylor, British Columbia, Canada.

The Taylor pulp mill has been idle since the first quarter of 2022 due to ongoing uncertainty with regards to the availability of economically viable fibre in the region and market weakness for its product — Bleached ChemiThermo Mechanical Pulp (BCTMP). The mill has the installed capacity to produce 230,000 air-dried metric tonnes per year of BCTMP.

According to Buffalo, the property will be repurposed over time into a multi-use industrial distribution and logistics hub focused on serving the region's energy, agricultural and forestry industries.

"When one door closes, another one opens for this site," said Jarrett Zielinski, President & CEO of Buffalo. "We, along with our stakeholders at Buffalo Rail, were able to establish new uses for the discontinued pulp mill that will optimize the site's characteristics and support industrial growth in the region.

"The multi-phased, multi-year development provides a much-needed response to the changing logistics and supply chains needs of industrial participants across multiple industries and sectors in Western Canada and beyond," Zielinski explained.

Involving an estimated $50+ million capital investment in the area, the first phase of development is anticipated to see 100 construction jobs and 30 full-time permanent jobs on the site. Phase 1 is expected to become operational around Q2 of 2025.

Robert Reimer, Chief Financial Officer of Buffalo, commented, "We appreciated working with Kevin Edgson and the folks at Canfor Pulp Products Inc. on this transaction and look forward to working with the community to develop this strategically important site. The features of this site provide boundless opportunity to support the industrial growth forecast for the region."

Headquartered in Calgary, Alberta, Buffalo Rail & Infrastructure Corp. was created in 2023 by a diverse team of logistics industry veterans to capitalize on global shifts in supply chain strategy. With its mission to develop modernized rail and rail adjacent infrastructure, Buffalo is set to better service the evolving needs of North American producers and shippers.

SOURCE: Buffalo Rail & Infrastructure Corp.