Monday, 7 July 2008

Elk Falls Kraft Mill Permanent Shut Down Announced Today

July 7, 2008
Elk Falls pulp mill to close permanently in November
We are announcing today the permanent closure of Elk Falls pulp and containerboard operations. The closure is expected to take effect on November 30, 2008 and will impact approximately 440 hourly and salaried employees.
I know the division and everyone in our company has worked very hard to reduce costs and to find alternatives to a permanent shut. Lack of sawdust affects only our Elk Falls sawdust pulp production. And, it has become clear that with permanent sawmill closures and other uses diverting available sawdust supply, the Elk Falls pulp mill cannot be saved.
We know this decision is significant for employees and their families in this community. We have discussed the severe challenges facing our industry with employees many times and we appreciate the effort people made to overcome these difficulties at this mill. Unfortunately, the pulp mill remains unprofitable and we hope you will understand that the mill and its jobs cannot be sustained in this situation.
We also hope the notice period will give people sufficient time to plan for the future, and we will take steps to help you access assistance through the mill adjustment committee, Community Development Trust Fund and other community agencies in the weeks ahead.
Today’s announcement highlights how important it is that employees, unions, companies and communities work together to overcome the economic barriers facing our sector.
In the weeks ahead, we will do our best to keep you well-informed and we ask that you take special care to do your work safely and that you watch out for your coworkers during these trying times.
Richard Garneau
President and CEO

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