P.G. Pulp Mills In Good Shape
By 250 News
Tuesday, December 08, 2009 03:57 AM
Prince George, B.C.-The future is bright for the pulp mills in Prince George.
As pulp operations in Mackenzie and Kitimat look for new ownership to either restore or retain operations, Brett Robinson, Vice President of Operations for Canfor Pulp Limited Partnership has a very positive outlook for the three mills in Prince George.
Robinson says when people say , “one mill has to go” he believes they are talking about British Columbia, not Prince George. “We’re survivors, we have the highest earning mills in Canada we have the best people in any mill in Canada, in my opinion and we’re going to be around for a while.”
Canfor Pulp has done a good job in reinvesting in these mills, says Robinson, “ There may be mills that have size advantage to ours, however, we have been very methodical in spending our money, we run our mills, frankly, better than others. The Intercon digester is the most heavily loaded digester in North America. You look at the Prince George mill, for a mill of its size its earning money, doing well, and the Northwood Mill is one of the largest in North America. Each of the three mills has some unique advantages, but they really all centre on the people and the work we’ve done to upgrade our facilities.”
Robinson says reviving the mills in the Province which have closed will depend on the availability of chips. “Whole log chipping is very expensive, and some of our competitors have had to get into that. If you look at some of the Coastal mills, there just isn’t enough residual fibre down there, fibre coming fro the sawmills has really dried up and so those guys are having to whole log chip and that takes away a lot of the potential for profit at those mills.”
With pulp production worldwide curtailed by 35%, Robinson says the CPLP mills are well positioned for the increase in demand for pulp “We fought long and hard to be a low cost producer and we survived that downturn, we have a good fibre supply in this region so we’re pretty bullish on the future of CPLP.”
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Is it any wonder that Canfor stock has increased about 30% over the last couple months...good job. Lets not forget West Fraser whose stock increased around 27% in the same period as well...fine management.
The Cariboo and central interior is fortunate indeed to have corporate citizens like these in our midst.
Both of these companies will lead the world in the forest products economy as we come out of our global economic challenges.