The province is expected to announce Friday a large-scale plan by an American company to build a plant in White River, Ont.
Sources tell the Thunder Bay Chronicle-Journal that the former Domtar mill will be bypassed to make way for a new plant that could turn wood fibre into aviation fuel — a little-known but proven technology.
About 250 White River and area workers lost their jobs when Domtar closed the northwestern Ontario mill in 2007.
Domtar blamed the U.S. housing slump and the negative impact on U.S-bound lumber exports from the high Canadian dollar.
A consortium of the Township of White River, Pic Mobert First Nation and private business people created White River Forest Products, and bought the vacant lumber mill from Domtar about a year ago.
The official announcement is to be made in Sault Ste. Marie, Ont., as part of a wood allocation announcement.