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Abitibi's Sawmill Closure in Mackenzie Permanent

By 250 News

Friday, November 07, 2008 09:56 AM

Prince George, B.C.- Abitibi Bowater has quietly confirmed the closure of its paper and sawmills in Mackenzie are  permanent.
 
While Abitibi Bowater had indicated it would be interested in selling its paper mill in Mackenzie (as long as the buyer didn’t produce a product that would be in competition with AbitibiBowater’s product line, it has not (until now) said it was not interested in reopening the sawmill operations.
 
In the company’s recent 3rd quarter results, AbitibiBowater slipped in this line “Included in the charge for closure costs is an impairment charge for the permanent closure in the third quarter of the Donnacona, Quebec and the Mackenzie, British Columbia facilities, which were indefinitely idled during the first quarter of 2008.”
 
The company’s head of communications, Seth Kursman, says there had to be an “accounting change” for the status of the mills, but that yes, the mills are permanently closed. “We are still open to selling the mills” says Kursman but he will not comment on whether there has been anyone sniffing around or making offers.
 
When AbitibiBowater announced the indefinite closure of the facilities, there was optimism the sawmills would be resurrected once the current downturn ends.

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So does this mean the workers will get severance pay?? If a new company were to buy the mills in the future, do these workers get first shot at the jobs even after receiving severance pay?? Or will the mills be sold for scrap??
What a blow to Mackenzie. Hopefully their is a blessing behind this and the company that buys the mills will be more community friendly! Lots of questions and we never seem to hear from the Steelworkers Union, so hopefully someone will let everyone know what happens now!
The Newsprint market is in the toilet in North America, therefore it is highly unlikely that the paper mill will ever re-open

With the severe decline in the housing markets and less demand for lumber I suspect no one will buy the sawmill.
Great...just great!
As a former Abitibi paper mill worker we knew a long time ago that Abitibi wouldn't be opening up the paper mill again. We all (papermill workers) received severance packages months ago.

This truly sucks for the sawmill guys. I think everyone expected the sawmills to fire back up again once the market turned around.

Lets hope someone else comes in to run the place soon.
With the internet, people just don't need to read newspapers anymore....demand is way down.
We just heard that this was an error in their report on their website and that they are not shutting the Mackenzie Mills permanently and they are not severancing the employees.. They apparently have intentions of still re opening the mills once the markets improve.
Listen to your Prince George Radio station news. It just said it was false information!
I really dont trust this company so nothing would suprise me that this could be their plans in the near future!
"The company’s head of communications, Seth Kursman, says there had to be an “accounting change” for the status of the mills, but that yes, the mills are permanently closed. “We are still open to selling the mills” says Kursman but he will not comment on whether there has been anyone sniffing around or making offers."


Now I can understand a error on the website, but when the head of communications says it's true then what? He has obviously been told from someone it's safe to comment on it. After reading this, even if they don't do it now, it shows that it is being thought of - meaning "be prepared"!
"The company’s head of communications, Seth Kursman, says there had to be an “accounting change” for the status of the mills, but that yes, the mills are permanently closed. “We are still open to selling the mills” says Kursman but he will not comment on whether there has been anyone sniffing around or making offers."


Now I can understand a error on the website, but when the head of communications says it's true then what? He has obviously been told from someone it's safe to comment on it. After reading this, even if they don't do it now, it shows that it is being thought of - meaning "be prepared"!
Personally I was hoping it was a definite shutdown so we could get our severence, and get on with our life
are you sure I beleive from what I gather that this is a rumour from the press . has this been released from abitibi? let"s wait & see
and where did our mayor get this info. with all the conections she has available to her. she better be right why otherwise get everyone excited Or down in the dumps. does she run on rumours? we don" needs this
what about opinion 250 where did they get theit info for reporting this ?
I know that this downturn in the forest industry is bad but, we all know that the industry is cyclical and lumber will be in demand once again. Many of the forest companies are shutting down plants permanently and not temporarily as in past downturns in the market. Does this mean these companies see no hope in the industry even when lumber is back in demand or, is it because they see no hope in the industry in Canada after the signing of the Harper softwood agreement with the US. Just seems to me alot of companies are throwing their hands in the air.
We At Opinion250 cannot speak for any radio station as to whether they get a story right or not, we do know this, we talked to Seth Kursman, company spokesman, to qualify the comments on the web site. "Yes the mills are permanently closing" is a direct quote from Mr Kursman.
"We are open to selling the Mills" is another direct quote.
Well whatever you guys it is not the case! Yes it was in ever local paper and on the news and on the internet but they contacted the local district again the same spokesperson and said it was not true.. Jsut the idling papermill will be closed permanently.. They still have the boilers going there or something.. That is apparently what they meant! I know it was a really stupid error on their part but did you expect anything else from the crap company??? We too were hopin for severance.. I think almost everyone was! So believe what you want but when you dont get your severance in the next month you will realize that yes it was an error.. Oh PS if you listen to the local Mack Town radio it was on there from 3pm on saying it was misinformation..We can only hope now that Worthington Inc buys it and starts it back up when he starts his Pulpmill back up..
Oh and another thing, we all better hope they do sell cause if they don't I can see them going bankrupt here any time soon and we wont see a dime of severance!!
Why would they severance the guys before trying to sell it? And why severance if they are that close to going bankrupt! That is just my take on it anyhow.
This is an opinion site.. LOL
Finally some one with some comon sence thanks snowflake,Companys that will be bankrupt in the short term dont pay severance , They need to refinace another 600 MILLION dollars in the next few months who would loan them this money ! Can you say fire sale .
Whew! There is hope yet. Lets not forget that once the pine beetle runs its course the Mackenzie area will still have lots of viable timber left.

If Abitibi is that close to bankruptcy then perhaps they will be willing to let the mills go for a song much in the same way the P&T mill was sold.
If it is over,it's over, but these people have a right to that severance pay!
And the B.C. government has an obligation to see that they get it!
Somebody is paying games with people lives!
False Hope should be the slogan on Stephanie's election sign not Faith in the future. What ajoke!!!! Mt.Milligan was supposed to be our saviour but what was learned at the Chamber meeting. Tourism, maybe in 10 years when people come to see the brand new ghost town!!!! Time to look elsewhere for a job people.
Yep wrote:
and where did our mayor get this info. with all the connections she has available to her. she better be right why otherwise get everyone excited Or down in the dumps. does she run on rumours? we don" needs this

Where the heck are you reading that from? No place in the article does it say anything about our mayor! Thank goodness you are not the mayor as you can't seem to read and just want to start up trouble. Regardless, she has proven to be a great mayor to our town and has kept us posted on every thing that is going on. Even if she reported the same information, it was posted on the Abitibi site as well as confirmed by the companies head of communications - that's about as much confirmation as a person should need!

Frankly, I prefer a mayor who is willing to work as a team with the rest of the elected council members rather then three people who think they can run the show by themselves.