No NCP ? Blame the Beetle
By 250 News
Prince George, B.C.- Canfor V.P of Marketing, Mark Feldinger says the mountain pine beetle had an impact on the decision not to rebuild North Central Plywood. “Dead dried mountain pine beetle logs cannot be used for plywood once it has checked (cracked), and there has been a reduced supply of Douglas fir.”
During the conference call this morning to discuss the second quarter results, Canfor executives would not say how much it might have cost to rebuild the mill, saying it was a moot point given the fibre supply.
Feldinger says there has been no decision at this point on what Canfor plans to do with the site, “The site is a leased site. We will be exploring our options over the next number of months.”
Canfor has noted a net benefit of $36 million dollars in insurance dollars from the burned out NCP and will put $13.5 million of those dollars into the immediate construction of a wood residue energy plant at it’s Ft. St. Jhn sawmill. The energy plant will provide enough energy to dry the wood, replacing the current energy source of natural gas. While the energy plant is not expected to create jobs, it does show Canfor has confidence in the Peace Region “Particularly in the green fibre supply ” says Feldinger.
The decision to not rebuild NCP means 280 people are left on the unemployment line. CEO Jim Shepard offered thanks to each and every employee of NCp saying their hard work and dedication was much appreciated. He also says Canfor has been trying to find work for some of the employees at other Canfor operations, however, since most of the other operations are under a different union, there are some challenges when it comes to work placements.
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