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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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Comments

This is good news and identifys the fine leadership within the Canfor organization.

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.

"Whole log chipping is very expensive, and some of our competitors have had to get into that"

Did you not know that you were into that?

What else would you do with the dead pine?

Good to see people working.
Canfor stock remains at the 7 dollar level. Same as two years ago. How has it gone up?
Because it was down around $4.40 earlier in the year...
Canfor Pulp is different than Canfor Corp though.

From canforpulp.com:
Last trade 7.71
52 week high 7.82
52 week low 1.30

From canfor.com:
Last trade 7.60
52 week high 7.75
52 week low 4.38
Good work Canfor, WTG West Fraser. You have been our back bone to the central interior, and you guys should make it through to the otherside of this downturn. I am guessing we are past the worst of it.
The mills in the PG area can't be doing that good. Word is that the bottom guys on each crew that are scheduled to work the Christmas stats are being told that they are not to show up to work on those days so that Canfor can save a few dollars. These people are needed on they day before and the day after but on the stat day stay home so we don't have to pay you a little extra for those days. Sounds like they are doing all they can to poison the work places in the local mills. I guess the 50 or 60 grand will go along way to finnishing their multi million dollar projects and putting a few cents extra into the share holders pocket at christmas instead of into the workers pocket for keeping their mill one of the highest producing mills in North America. Merry Christmas from Canfor.
Apester: If not wanting to pay a bunch of guys close to $100 per hour to sit around on their butt at work on Christmas day is "poisoning the workplace" then I say go ahead and poison away.
apester....your logic is seriously flawed...and if you can't see any farther than Christmas, then outlining the long term benefits of the success of Canfor and West Fraser may be a waste of time.

Thruth is most millworkers like to look for long term stability in there employers and with Canfor and West Fraser leading the forest industry recovery....long term stability is more anticipated than ever with those companies.

Merry Christmas...
How about the raises that mgmnt got last week. Sustainability would be nice but these companies waste more than the cost savings that the wages will provide on a daily basis. Mill workers are appalled at the waste as they want jobs long term as well. The myth that those guys sit around on their butt is grossly miss stated. Sure there are a few that abuse the system just as in your work place and in others but the concept that they are all fat cats is wrong. Your head would spin if you could see the miss managment that goes on in these places.
They keep on ticking and taking a licking...but the market says they can do it.
Pretty hard to go wrong when you get a rebate on the lumber you exported to the USA of approx $500 Million and then get an additional $122 Million from the Federal Government.

Having said that Canfor Limited Pulp Partnership is 51% owned by Canadian Forest Products, which has the illustrious majority shareholder Mr Jimmy Pattison, and some of his cronies on the board of directors.

I expect that Canfor will do well in the years to come.