Paper Excellence announced Thursday afternoon the indefinite curtailment of its paper operations at the Catalyst Crofton mill starting in early December 2022.
The company says paper markets in China served by the mill have significantly weakened. There has also been substantial cost escalations for chemicals, energy and wood fibre used at Crofton and the intersection of the pressures has materially impacted the financial viability of the paper operation.
The curtailment affects 150 employees, 80 from Unifor and 70 from the Public and Private Workers of Canada union.
The company said it recognizes the hardship this will have on its employees and the Cowichan Valley.
B次元官网网址淲e hope to minimize these impacts through union discussions that will consider secondments, utilization of earned time off and employment insurance,B次元官网网址� stated a press release. B次元官网网址淭he millB次元官网网址檚 pulp operations will continue production during the paper curtailment.B次元官网网址�
The paper machines are expected to continue for 60 days until the curtailment takes effect.
North Cowichan Mayor Al Siebring went on a conference call with the Province Friday morning to discuss the situation.
B次元官网网址淲e connected with Jobs, Economic Recovery and Innovation,B次元官网网址� he said.
Through the Community Adjustment Program managers, it was a chance to put out some feelers in case some provincial support is eventually required.
B次元官网网址淲e donB次元官网网址檛 know how long it (the curtailment) is,B次元官网网址� said Siebring. B次元官网网址淚t could be permanent, it could not be.
B次元官网网址淓verybodyB次元官网网址檚 looking to the future to mitigate as much as possible the effects of that.B次元官网网址�
Options are being considered by bringing together a group of community stakeholders, representatives of the mill and Vancouver Island University for possible retraining for such things as heavy equipment operators, if necessary.
B次元官网网址淚B次元官网网址檓 not 100 per cent sure if this will be needed,B次元官网网址� said Siebring. B次元官网网址淚f it is, weB次元官网网址檙e putting the infrastructure in place to support those workers. WeB次元官网网址檙e trying to be pro-active.B次元官网网址�
Operations at the paper facility had previously been in a two-week production curtailment at Crofton that started Sept. 10 before workers returned.
That curtailment coincided with scheduled annual maintenance and 95 employees were affected with temporary layoff notices at that time.
Paper Excellence said it is reaching out to assist customers with the upcoming transition and will continue to meet supply needs with production from its Port Alberni mill, where possible. In 2021, the company invested in repurposing the Port Alberni paper machines to manufacture food and packaging grades.
Paper Excellence added it is working with both Provincial and Federal Governments while it conducts studies at Crofton to determine if itB次元官网网址檚 feasible to accelerate a conversion into natural food and packaging grades there as well.
B次元官网网址淧aper Excellence continues to believe in Canada as a leader in the pulp and paper industry and remains committed to its long-term investments here,B次元官网网址� the company added in the release.
