Prospective Buyers Give Eurocan A Look

Monday, February 01, 2010 03:51 AM

Last roll of paper produced at Eurocan last week ( photo courtesy CEP Local 298)

Kitimat, B.C.- “Optimistic” that’s how CEP local 298 President Mary Murphy describes her mood heading into what may very well be the last two weeks of work at the Eurocan mill in Kitimat.

There’s have been several prospective buyers of the mill come through the facility, and Murphy says each one is being given careful consideration “There are a lot of tire kickers for sure, but, all are suggesting they could put some capital into the mill, so we have to investigate each one.”

West Fraser announced last October plans to close the Eurocan mill. The closure takes with it nearly 600 direct jobs.

Murphy and other workers at Eurocan have been engaged in a feasibility study to see if the mill can survive in some other form. The results of that study are not expected for another 6 to 8 weeks.

Murphy says it has been emotional at the mill over the past week “We watched the last roll of paper come off, we’ve watched the last pulp production, and now we are into draining pipes and pumps, it has been hard for sure.”

The CEP local has been in discussion with the workers at the Harmac Mill in Nanaimo for secrets to their success. The employees there bought the mill and started with one paper machine, they have been so successful, they are adding a second paper machine to the line. “We are hoping they can share with us, some of their secrets to their success.”

Some good news this past week came in the form of information about the North West B.C. Forestry Coalition. Numerous license holders have come together to try and entice a manufacturer to the Terrace region. They have a combined annual allowable cut of nearly 3 million cubic metres. That could stabilize the fibre supply for any possible future use of the Eurocan mill.

Previous Story - Next Story

Email |

Print |

Facebook |

Twitter |

Digg |

Del.icio.us

Posted on Monday, February 01, 2010 03:51 AM in News by 250 News

Return to Home

Comments

Posted by: MacOldtimer on February 1 2010 6:27 AM

I truly hope that Eurocan can be bought and saved.. I hope that there isn't the false hope that we had in Mackenzie so many times in the past couple of years with our mills..Wishing the workers there the best of luck!!

Posted by: Andyfreeze on February 1 2010 9:05 AM

Fingers and toes crossed!

Posted by: Eagleone on February 1 2010 12:27 PM

Its all up to the workers to present a business case... then it will be up to the forest ministry to give that business case precidence over the pipeline right of way, which is their achilies heel.

I think if the Northwest is to have any chance at a viable forest industry than they will need a pulp mill in Houston to enable the pellet plants and saw mills in the surrounding region. Not neccissarily a pulp mill for paper, but rather many other products that can be made from pulp where there are many existing opportunities out there today.

Time Will Tell

Posted by: Born in BC on February 1 2010 1:04 PM

I think that a bank should be deciding if the business case has merrit.

If a business case is adequate then a bank will back it. If no banks will touch it but the government backs it well thats politics. See Skeena Cellulose. We are still paying for that little bit of politicing.

Do that long enough and we will develop lefty workers as useless as those at France Telecom. And when the real world hits them in the face they cant cope and well, google it, its ugly.

Power to the people is great, but when the people are standing around waiting for the government to solve their problems through retraining and other handouts then who really has the power?

Posted by: commoner on February 1 2010 2:26 PM

"...business case precidence over the pipeline right of way, which is their achilies heel."

Pipeline right of way? Whatchoo talking 'bout Eagleone? As far as I am aware there is NO conflict. West Fraser's decision regarding Eurocan and the pipeline are SEPARATE.

If you have a link to support your assertions I would like to see that please.

Posted by: Eagleone on February 1 2010 2:41 PM

I don't have a link, but I heard that the pipeline will run through the Eurocan stockpile property and would be using the Eurocan docks as their terminal... not sure if they want a link to that kind of information... if its true, but my source was locally involved, so I can only say its a high likelyhood to have some impact on any Eurocan decisions.

Posted by: Eagleone on February 1 2010 2:46 PM

The pipeline right of way isn't that big of a deal if the pipeline is laid underground while the mill is shut down and the property could go back to its original use once the pipeline is in place... the bigger issue might be how the logistics of their docks are viewed I would think? If they shut the mill down for 2 years and started up again would they need to hire back the same union members or even hire union employees is another factor maybe? Thats whats happening elsewhere in the north, so why not at Eurocan?

Posted by: commoner on February 1 2010 3:54 PM

OK thanks eagleone. Seems you got your info from the infamous Kitimill...sigh

The pipeline proposed will be on the opposite side of the channel and the port further down the chuck...at least that is the info I have gathered from news/proposal sources. (I will see if I can find the info and post...but it is a bit off topic)

As a former resident, I am aware of the rumour that the pipeline was forcing Eurocan to close and it is false (as are most of the stuff that comes from that particular virulant grapevine...lol).

I hope that the employees secure a fine business deal soon. It is tough on the whole community, but I know (as do they) they are a resilient bunch and always support each other through tough times. My thoughts are with all in Kitimat.

Posted by: commoner on February 1 2010 4:16 PM

psst...here eagle :)
http://www.northerngateway.ca/project-info-11

and the government info as at Dec 2009
http://www.one.gc.ca/clf-nsi/rthnb/nwsrls/2009/nrthrngtwjrpgrmnt-eng.html

A new terminal will be built it seems. The second hand info I have claims it will be on the village road side, as RioTinto owns the other side...

Posted by: commoner on February 1 2010 4:26 PM

"The pipeline right of way isn't that big of a deal if the pipeline is laid underground while the mill is shut down and the property could go back to its original use once the pipeline is in place... the bigger issue might be how the logistics of their docks are viewed I would think?"

I can not see the property even being in question. That would require Enbridge to have the pipeline cross the Kitimat River which doesn't make logistical sense. They will follow Hwy 37 corridor and terminate on this side of the channel.

As for using existing docks, I believe due to space they decided to build their own further down the channel. This would save negotiating with RioTinto for access. I am not sure what is going to happen with Eurocan's dock.

Posted by: Eagleone on February 1 2010 10:14 PM

I don't know Commoner... seems like a lot of conjecture and not a lot of real facts... evasive at the least you would have to admit? All I get is the west side of the channel and that would be... Village Road is on the east side is it not?

One would think this far into their proposal people would want to know especially in a place like Kitimat considering?

Posted by: Eagleone on February 1 2010 10:20 PM

Seems to me they would follow the topography of the river... to go to Village Road they would have to go up and over the valley side (lots of elevation for no gain), or cut through the city... either of which make no sense. Following the river makes sense for a pipe line and especially considering the existing right of ways on that side of town?

Posted by: commoner on February 1 2010 10:32 PM

http://maps.google.ca/maps?f=q&source=s_q&hl=en&geocode=&q=Kitimat+BC&sll=54.026125,-128.611965&sspn=0.050418,0.110035&ie=UTF8&hq=&hnear=Kitimat,+Kitimat-Stikine+Regional+District,+British+Columbia&ll=54.025318,-128.61557&spn=0.100839,0.22007&z=12

They would follow the topography. I don't have the precise details but the line is headed to the village rather than within city boundaries. The pipeline benefits the Haisla nation directly and Kitimat townsite indirectly.

Posted by: commoner on February 1 2010 10:54 PM

I stand corrected eagleone! You are correct. I found the info here:
http://www.ceaa-acee.gc.ca/050/documents_staticpost/cearref_21799/2075.pdf

Page 36 There is no mistaking it. Hmm...guess I require new sources! Inserting foot now :)

Posted by: DPJ on February 2 2010 10:41 AM

If a chinese company is looking into buying the pulp mill, the non chinese employees should watch their backs. They treat non chinese employees like trash. I am experiencing this presently myself.

Posted by: Eagleone on February 2 2010 4:33 PM

Thanks for the link Commoner. Like I said its very evasive when it comes to Eurocan, but if one follows their route and plans one can't help but see that it would have a major impact on Eurocan... hopefully its short term?

From the governments perspective they don't care so much about the jobs in the North, so much as they care about the potential for royalty and tax revenues. The government and their high paid bureaucrats win big if the pipeline goes through... even if it has a cost of a pulp mill that employs 600 people.