1976–1991: Continuous Upgrades and the Shift to Employee Ownership
Mill and Woodlands Modernization (1976–1980)
The late 1970s marked another turning point for Spruce Falls. In 1976, the company installed a new chip handling system to prepare for the future Thermomechanical Pulp (TMP) mill, while also expanding its capabilities with the purchase of a helicopter. Changes moved quickly. Paper machine speeds were increased, the Smoky Line Railway was removed and converted into a gravel road, and major operations — including the sulphite dryer, bleachery, and chip mill — were shut down in 1978 to make way for a $70-million, five-year modernization program. Nature tested the company's resilience again in 1979, when flood conditions caused the failure of the main holding works, sweeping away 25,000 cords of wood downstream. Still, by 1980, computerized moisture and weight control systems were being installed across the mill, and a new Forest Management Agreement was signed with the Province of Ontario — securing the company's long-term access to resources.
Harvesting Mechanization and Process Innovations (1981–1988)
The 1980s ushered in a wave of automation and mechanization across both mill and Woodlands operations. New computerized systems were installed on paper machines to control basis weight and moisture more precisely, while a second line for the TMP mill and a second clarifier began operating. As sulphite operations wound down, the Magnefite Mill was refurbished and successfully restarted, signaling a full pivot toward newer processes. In the woods, harvesting operations underwent a complete overhaul: feller bunchers, stroke delimbers, and high-flotation skidder tires were introduced, followed by forwarders that replaced traditional skidders. Camps 80A, 80B, 86, 115, and 95 were mechanized or closed as live-in forestry camps became a thing of the past. Investments continued within the mill, too, with the installation of Top Flyte top-wire units and new calender stacks to boost production quality. Even amid a short strike in 1988, modernization continued at a steady pace.
Major Transition to Employee Ownership (1989–1991)
By the end of the 1980s, Spruce Falls was a very different company than it had been just a decade before. The 100-millionth tree was planted across company limits, forwarders were fully integrated into harvesting operations, and a new central garage was built to replace older scattered depots. But the biggest change came in 1991, when ownership itself shifted hands. Spruce Falls Power and Paper Company was officially acquired by its employees, Tembec, and the community of Kapuskasing, forming Spruce Falls Inc. — marking a bold new era of local stewardship, resilience, and pride.
