Timber processing machinery for Canadian mills has turned a profit after being built at a cost of about $7,500, the Alberta government says.
The company that built the machines, Timber Processors Inc., said it expects to make about $1 million in profit by the end of the year.
The announcement comes less than a week after the provincial government announced it was cancelling a $5.2-million project to build a lumber mill in Calgary.
It said in a statement that the company, which was given $5 million from the provincial and federal governments, was unable to get the machines built on time.
“We have decided to halt the Timber Processers project,” the statement said.
The province has also suspended its $6-million, three-year agreement with Timber Processes Inc. The agreement provided a loan guarantee for the project, but it expired on Jan. 31.