I wonder if Christy even knows where Chetwynd is?

Awesome news!!

doesn’t matter whether she does or does not, what matters is the business environment here is attracting investment, meanwhile the NDP run around trying to attach their anchor to every tragedy known to man from the highway of tears to the mishandling of WCB just to keep their name in the news and appear relevant.

Paper Excellence Canada, is a subsidiary of Paper Excellence P.V. Which is a holding company, based in the Netherlands.

Paper Excellence P.V. operates as a subsidiary of PT Sinar Mas Group, the largest conglomerate in Indonesia. One of the subsidiaries of PT Sinar Mas Group, is Asia Pulp and Paper.

So in all probability the Chetwynd pulp mill is owned by Asia Pulp and Paper.

In any event it certainly isn’t owned by any Canadians, as all the above companies are privately owned by either Indonesians, or Chinese.

Its interesting to note that these companies have such huge holdings in Canada.

Any profits made by these companies leaves the Country. So at the end of the day we get some stumpage, some jobs, and some tax dollars.

One wonders why Canadians, and Americans can no longer compete in this business.

Anyone on this site have any ideas???

Well for starters the returns are very, very low and the risks are very very high. These companies need the pulp, as they are the end user, so they can handle more of the risk in running the mills.
If you want to split the costs out of 100 dollars spent by these villainous foreign owners
100
40- wages (of which 30% is taxes) so 12% goes right back to us.
20-Power and consumables, at a much higher rate than us priviliged payers for residential
20-Contractors- who again pay lots of wages that become taxes.
15 to capital costs which include all the suppliers, dealers, chrome shops, fitting shops,
5 to profit.

These numbers are why Tembec shuttered the mill in the first place.
Further more if we did a study and asked the 120 people who will take jobs at PE mill how many of them would rather Tembec still owned it (a Canadian Co)and kept it shut- 120 would say- we just want jobs.
So stfu. Goodnight.

The risks are lower for foreign based companies, Palopu, because they will get their financing from the same Canadian banks a Canadian based company would.

Only the collateral attachable in the event of default will just be their Canadian assets, not the assets the parent company holds abroad.

So.. if you’re in a spot where you can borrow everything here, to buy and operate what you’re buying here, and the only thing you’re really risking is, well, absolutely nothing, there’s an attraction. Our banks will lend to them because they believe the foreign outfit has an “in” for exports of stuff made here into that foreign market.

Of course, a Canadian company can do the same thing when it expands abroad.

They will probably get an area based tenure as well, because if we know anything aobut the Chinese is that they are not happy just owning the operation, but rather the raw resources for the operation as well.

So essentially in the long run this is a land purchase by the Chinese buying rights to land under the guise of a pulp mill purchase from a subsidiary with a Canadian sounding name. If the Canadian sounding subsidiary also makes generous political donations one can be sure the BC liberals are more than willing to make the applicable tenure changes… hence the process going about today involving area based tenures IMO.

“So at the end of the day we get some stumpage, some jobs, and some tax dollars”
oh – is that all? :s

Interceptor. The problem is, is that at the end of the day we get the stumpage, taxes, and some jobs, but we lose the Canadian company.

A lot of these companies are actually owned by the Chinese Government, so how do Canadian companies compete with the Chinese Government????