Clear Full Forecast

Two Pulp Mills In P.G. To See Market Curtailments

By 250 News

Tuesday, October 28, 2008 04:02 AM

Prince George, B.C.- Intercontinental Pulp Mill and Prince George Pulp and Paper Mill employees can expect to see market related “curtailments”.
 
The Canfor Pulp Limited Trust Partnership announced its 3rd quarter results last night. The release indicates that in addition to the 15 thousand tonnes of pulp that will be taken off the market because of planned maintenance shut downs, there will need to be further curtailments to reduce inventories. 
 
The release reads:  “Due to general weakness and the global financial crisis, we are seeing a slowdown in pulp demand resulting in an increase in inventories and decreasing prices. The impact of price declines in US dollar terms is mitigated by lower oil and natural gas prices and a weakened Canadian dollar. However, with rising inventories, the Partnership has decided to take market related production curtailments of approximately 30,000 tonnes of pulp and 10,000 tonnes of kraft paper. These curtailments are expected to occur over the next several months.”
 
The bottom line for the Partnership is a positive one, the third quarter of 2008 saw the Partnership wrap up with sales of $215.4 million and a net income of $11.1 million. That is lower than the same quarter a year ago, when sales were $228.9 million and the net income was $33.2 million.
 
The report also notes the Prince George Pulp Mill is still not operating at full capacity due to operation of a temporary chip screening system. ( this is a result of the fire last January which destroyed the chip screening system)
 
Construction of a permanent system is nearing completion and the system is expected to be operational before the end of the year. Pulp production volume lost as a result of the Prince George Pulp Mill using the temporary chip screening system is approximately 7,000 tonnes in the third quarter compared to 6,000 tonnes in the second quarter of 2008. The financial impact of this reduced production volume has been offset by accrued business interruption insurance recoveries of $3.5 million in the third quarter and $3.3 million in the second quarter.

Previous Story - Next Story



Return to Home
NetBistro

Comments

Hopefully they shut down at Christmas for a few weeks and then everyone can have an extra long holiday season.

I wonder if they will keep the chip plant going if they curtail production, or will they be closing sawmills instead for temporary shut downs, because all the pulp mills are up to their ears in chips as it is. I've heard rumors, but most of them are just that.
It sure would be nice to hear about the Pulp trusts plans for co-gen in Vanderhoof and elsewhere? It seems that has been talked about forever with no forward momentum.
Nice to see they still made a profit, oops!
The mills will be down for a while when Chemtrade goes on strike next month anyways.
It won't be long and you will see only one pulpmill in operation in PG.
Perfect time to implement a *soak the big polluters* agenda!

It's the smell of money and that smell is what employees many in PG and puts food on the tables of their families. To those who don't like, they can always move.
Gee thanks, mythoughts. Good to know there are people who don't care about air quality and the general health of the population as long as there's a buck to be made.
The pulpmills were here before you were. You chose to live here.
What a wonderful attitude. Pretty typical though...
Hear that everyone? 'Being here first' entitles you to do whatever you want.
When they threaten your job see how quick you are to point fingers.
Exactly Ruez. I work for Canfor and so do most of my friends and family. Our jobs are just barely hanging on as it is. I wake up every day and am thankful I still have my job. Many are not so luckly. Now all we DON'T need are these people that can't stand the smell! Tough, live with it. It's our jobs and we need them.
Yep. Just sit down an shut up. Your health doesn't matter. Shhhh...
Someone sounds a tad jealous. What's to complain about? I don't have a problem with it but it sure sounds like you do. I am not in favour of anything that puts people out of work. I also have a backyard fire in the summer sitting with my family. In the winter, I idle my truck to warm it up. The law says I can do all this & until it changes, I will continue to do so.
There are very few activities of mankind that do not have any impact on the environment.

Industrial activities have a greater impact than those of a hunter/gatherer society. It is impossible for six and a half Billion (!) humans to go back to a hunter/gatherer way of life - there simply isn't enough to hunt and gather to keep everybody alive.
Two choices.

We can run the mills and listen to people with a full tummy bitch about their health,

..or we shut it all down and poison the financial environment in PG, how healthy people are with a empty tummy?
Love to hear the rationalizations/excuses for polluting the environment. Keep it up!
Who here lives without a car, electricity, toilet paper, stick frame house?......That's what I thought.
It's the smell of money going into the pockets of the company and its employees. Its the smell of money going from their pockets to taxes. Its the smell of tax money going into the health care system.

Spend some money to put technology in place and more than that would be saved by not having to put it in the health care system.

I think it is ridiculous to have seatbelts, air bags, helmets, etc. Let people get injured. Let the health care system pay for it. Same argument in my mind.
MrPG, you seem to have all the answers. What do you suggest to clean up the air and keep people working?
They call it a recession now
Back in my folks day they called it the hungry thirties.
No matter what you want to call it.
It’s coming again.
Make no mistake about it.
"Two choices. We can run the mills and listen to people with a full tummy bitch about their health, or we shut it all down and poison the financial environment in PG, how healthy people are with a empty tummy?"

Of course, you've forgotten about options like (among others):

- Pressuring industry to make improvements to their operations that will reduce harmful emissions
- Funding research and partnering with industry to find ways to improve air quality
- Working to have industry re-located to areas where their harmful emissions have less impact on human populations
- Medium to long-term goals of creating new, cleaner industry in the PG area that will help offset the job losses that WILL eventually occur in forestry (if you think the pulp mills will be around forever you are kidding yourself)

The notion that "I work for a mill so I have more say" is ridiculous. I've lived here my entire life, I work here and pay taxes here as well. Guess what? I have just as many "squatting rights" as the mill worker and I want to see the air improved. Guess what else? I'm not alone. Get used to it :)

NMG, of course you have forgot that if industry has no science left to make improvements, funding can't change the fundamentals of paper making, and relocation means bye-bye - you are going to suffer.

Governments can have all the medium/long term goals they want, and just as long as it is just a wish list, the tax bill to support the social structure will remain intact.

NMG, you've lived here all your life, so you can't deny that the polution is much less now than it used to be. Get used to it. It ain't a perfect world.

Are you a politician, NMG? You just said four great soundbites that have no real substance.
Pressure an industry thats already in financial trouble? Fund research with what? Relocate the mills, yet you say they wont be around long - so why would they rebuild anywhere?
I will be the first to admit I dont have the answers, but as it stands right now the mills are working within the law and bringing more money to the economy of PG than tourism ever will.
"I will be the first to admit I dont have the answers, but as it stands right now the mills are working within the law and bringing more money to the economy of PG than tourism ever will"

Laws change with time and with society's wishes. You can bet than 10 years from now, the general population will not put up with the pollution that we have now. Much like how the population of today would not put up with the pollution from the 70's and 80's. You simply cannot ignore the fact that environmental regulations WILL continue to become more stringent in the years to come. We can either be proactive and deal with it now (and adapt at the same time) or we can wait until it's forced upon us, at which time the result will likely be more painful to PG as a whole.

Oh and I actually I said relocate industry, there is more to that than just mills . . .