Prince George, B.C. – Canfor Pulp Income Partnership expects to have a new chip screening system in place at Prince George Pulp mill by the end of this year. The mill has been operating with a temporary system since the old one went up in flames in January. 

 

In a conference call to discuss the second quarter results, the Partnership says the challenge right now seems to be fibre supply. “The availability of chips today seems to be a little bit better today than it was three months ago” says Paul Richards, President and Chief Executive Officer for the Partnership.   He says the supply is currently balanced as the pulp mill shut down for maintenance is matching the closure of saw mills.

 

Right now, the Partnership says it has about 4 ½ weeks supply of chips on hand.

 

Richards says the Partnership is seeing higher costs for freight (about 3%) as the costs of fuel are driving up the price to have goods shipped to customers.

 

 The Partnership has submitted a proposal to provide power to the B.C. Hydro grid.  Richards says the proposal is under review “Right now that proposal is being reviewed by B.C. Hydro as to the cost of the project and the pricing required for the electricity it produces, so that’s where that is right now.”