Fortress Paper Ltd. ,a Vancouver based paper producer, is intending to purchase a mothballed pulp mill in Thurso, Que. for $3 million, thereby investing another $153 million in its reestablishment as a specialty cellulose plant and biomass power generator.

The paper producer firm said that it is looking forward to commence the production of "dissolving grade" cellulose by mid-2011. It will be supplied to the textile industry.

It is also planning to bring out a 25-megawatt power plant which will supply electricity by 2012. This power plant will be nourished by waste generated from its operations.

The Thurso mill was closed down after its owner Fraser Papers sought protection against bankruptcy in June 2009. The shutting down of the mill led to more than 300 job losses.

The Quebec Government announced after few months for the sale of the plant and it granted a $102.4-million loan to Fortress from for the project.

The reestablishment will generate the jobs. However, any exact figure for the employment opportunity in the reconstructed mill has not been released yet.

The plant will be designed to have an annual capacity of producing 200,000 tonnes of air-dried "dissolving" pulp.