New Brunswick on hook for $10 million after company cancels plan to build solar plant
June 27, 2011 by The Canadian Press
New Brunswick taxpayers are on the hook for $10.8 million to buy some of the assets of Umoe Solar after the Norwegian company cancelled plans to build a plant in Miramichi.
The provincial government says it is spending that money as part of a 2009 obligation to acquire assets based on an agreement signed with the company.
“The decision by Umoe Solar not to proceed with the construction of the polysilicon plant is an unfortunate turn of events for the Miramichi region and its residents,” Economic Development Minister Paul Robichaud said in a statement. “Today we are forced to honour the 2009 contract between the company and the former government.”
The government will acquire land and equipment from Umoe Solar.
The privately held Umoe Group will retain ownership and continue to operate the Fornebu sawmill in Bathurst, which has about 95 employees.
The Umoe Group purchased the former properties of UPM-Kymmene in early 2009 with the intention of entering the solar energy business by constructing a solar grade polysilicon manufacturing plant.