The Veldman brothers see promise with Michigan paper mill acquisition

A well-known Northern Ontario brownfield redevelopment company has acquired another former paper mill property, this time in Michigan.

Tillsonburg-based BMI Group announced it's picked up the E.B. Eddy paper plant in Port Huron and is rebranding the 44-acre property as the Port Huron Multimodal Hub. The acquisition price was not disclosed in a news release. 

The mill was shuttered by Domtar in 2020. Domtar inherited the mill when it acquired E.B. Eddy in 1998. The property’s operating history as a paper mill dates back to 1888

In an Oct. 2 statement, BMI is calling its foray into the States as a “milestone acquisition” and a “pivotal step” in its U.S. expansion plans. The company said this is its seventh forest products mill acquisition. 

"Expanding into the U.S. offers us access to a vast market with immense potential," said Justus Veldman, managing partner at BMI Group, in the release.

"The Port Huron Multimodal Hub is more than just a real estate acquisition—it's a platform for industry growth, designed to attract business and drive long-term economic value for the region."

BMI Group, led by the Veldman brothers, John, Justus and Paul, and brands itself as a real estate development and revitalization firm specializing in adaptive reuse and repurposing of old industrial and commercial properties.

The company has a raft properties across Ontario, including former Resolute paper mill sites in Iroquois Falls and Fort Frances, and the former Norampac cardboard plant in Red Rock. 

Over the years, the company’s vision for some of its Northern Ontario properties have fallen short of community expectations, but the Veldman’s seem to be a path toward achieving some spectacular results with others.

In southern Ontario, particularly on the Niagara Peninsula, BMI has landed a lithium-ion battery plant with its Port Colborne property and been lauded for its redevelopment work in Thorold.

In the North, the Red Rock site shows the most promise as a host site for a potential northwestern Ontario critical minerals refinery involving Rock Tech Lithium.

With Port Huron, BMI said they have an industrial property with more than 1,000 feet (304 metres) of frontage on the Black River, rail access, truck loading docks, 42-foot ceilings inside with crane capacity and more than 350,000 square feet of indoor and outdoor storage space for leasing opportunities.

According to its news release, the Port Huron property will “undergo a comprehensive ‘Ready-Stating’ process” involving environmental remediation, selective demolition and redevelopment of some key spots on the property. BMI said the goal is to “create a dynamic, multi-use environment that fosters tenant recruitment, business growth, and regional economic impact.”