The idled Ear Falls sawmill as well as the rest of Domtar’s solid timber products division changed hands, Monday, as the company announced the sale of sawmill assets to Eacom, a new entrant to the forest industry.

Operations have been suspended at the Ear Falls facility since August 2009.

Other mills included in the transaction include Timmins, Nairn Centre and Gogama in Ontario, as well as Val-d’Or, Ste-Marie and Matagami in Quebec. Eacom has also purchased an equity interest in an eighth Domtar sawmill, in Elk Lake, Ontario.

The assets will include the transfer or grant of tenures to enable production at the mills. The sawmills transferred as part of the transaction represent approximately 3.5 million cubic metres of annual logging rights and a production capacity of close to 900 million board feet.

The $80 million transaction plus working-capital elements estimated at $30 million to $40 million is expected to be finalized over the summer.

Eacom, now based in Vancouver, will establish its headquarters in Montreal, QC and will become one of the largest publicly-traded lumber producers in Eastern Canada. Domtar forest products employees and its management team will be transitioning to EACOM.

“With this acquisition we pursue our vision of becoming a major softwood lumber producer and we look forward to integrating Domtar’s leading wood products management team to ensure a smooth transition. We recognize that customers have choices in wood products suppliers, and we will work hard to secure their business, notably through our continued commitment to the FSC-certification,” said Rick Doman, President and Chief Executive Officer of Eacom Timber Corporation in a statement.