MacDonald, who owns M.R. MacDonald Holdings Ltd., signed a service agreement with the new owners of Port Hawkesbury Paper (formerly NewPage) earlier this week that will see his company working in partnership with the Cape Breton (Nova Scotia) mill to sustain and harvest forests in this area in the most efficient way possible.
On Monday (Oct. 22) PHP signed agreements with both MacDonald Holdings Ltd and B.A. Fraser Lumber Ltd, a mill in Margaree Valley.
With the deal, quality hardwood sawlogs harvested by MacDonald Holdings from PHP controlled crown lands will go to the sawmills, while the biomass will be sent to PHP.
Calling the agreement a win, win for both companies, MacDonald said it will promote management of hardwood stands, ensuring an improved hardwood resource now and for the future.
"These types of agreements are very vital to the economic development of rural areas," he said.
M.R. MacDonald Ltd. is located in West River and is a fully integrated forest products company performing harvesting, hardwood selection, silviculture and hardwood sawmill operations. Lumber products are produced for the domestic and overseas export market, including KD hardwood lumber, furniture components, flooring blanks and hardwood cants.
While the company has had a wood supply agreement with PHP for the last five years, after the Port Hawkesbury mill went bankrupt and was sold, a new deal had to be signed.
"We're a new company, we need new service agreements," explained Andrea Coombs, leader of sustainability and outreach at PHP.
She said the deal is a benefit to all parties involved.
"We try to always sell high value wood to users that would actually use them for what they are intended for," she said.