AbitibiBowater Mackenzie Sawmill Sold

Tuesday, March 16, 2010 09:18 PM

EXCLUSIVE

Prince George, B.C. - While it would seem that in the past few months the only mill working overtime in Mackenzie was the rumour mill, this time it has produced a product.

Opinion250 has learned the AbitibiBowater sawmill and planer mill in Mackenzie have been sold.

The mill has been operating with one shift and an overnight maintenance crew since October 18^th of last year. Today, workers on site were advised by an AbitibiBowater representative, that they are to clear through the existing inventory of logs in preparation for a new owner. That work will likely take the current crew into late April. The employees say they expect they will be facing lay off until the new owners take over, a period that could take 60 – 90 days.

Some employees say they estimate there are about 110 truck loads of logs still in the bush, but spring break up is fast approaching.

When Opinion250 contacted AbitibiBowater in Montreal to ask about a sale of the sawmill and planer mill , a company spokesman said he could neither confirm nor deny the report.

As for the identity of the new owner, workers were told it is Conifex, the same people who bought the bankrupt Pope and Talbot mill in Ft. St. James two years ago. At the time that mill was purchased, Conifex CEO Ken Shields was quoted as saying “This is the appetizer course and the main course is yet to come."

Ken Shields, CEO of Conifex, has not returned our calls.

Certainly the recently announced $10.75 million dollar upgrade to the road linking Mackenzie and Ft. St. James is a bonus for the folks at Conifex. The two laning and upgrades to the former forestry road, will provide faster movement between the two Conifex operations.

Ernst and Young, the monitor for the disposal of AbitibiBowater assets, reported last month there were “advanced discussions with a prospective buyer for the sale of the 2 sawmills and possibly the B.C. Mill ( the pulp and paper mill).”

While the sale being confirmed today doesn’t mention the pulp and paper operation, the sawmill and planer mill will change hands once the Quebec Court has approved the sale.

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Posted on Tuesday, March 16, 2010 09:18 PM in News by 250 News

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Comments

Posted by: He spoke on March 16 2010 10:34 PM

Hmmmm, is it good news. I am sure there is a lot more to this than what has been reported so far

Posted by: HabsFans on March 16 2010 10:47 PM

So, Canfor MacKenzie is operating, producing chips, and if A-B starts up both sawmills in MacKenzie, there will be more chips available.

Is there potential for the Pope & Talbot pulp mill to re-open, or is it too far gone?

There was talk a few years ago about building a power generating plant in MacKenzie. Perhaps that could be back on the horizon if there is a good supply of fibre.

Let's hope this Abitibi sale goes through.

Posted by: Mercenary on March 16 2010 11:02 PM

I hope the sale is a sure thing simply so I can sell my home in Mackenzie for what I owe on it.

I think the old Pope and Talbot mill is in good shape as there has been a group in there keeping the important equipment warm over the winter.

I haven't heard all that much about the co-gen plant that was going to be built lately.

Posted by: Eagleone on March 17 2010 6:40 AM

Mackenzie would be better off with a pallet plant. Quicker faster and easier to put in a simple business model. A pallet plant can run off the bi-product of 2-3 saw mills, where as a co-gen unit is going to take much more product than that, and the pulp mill will need some to when it starts up.

Good news announcement though it sounds like to me.

Posted by: deadtowne1 on March 17 2010 7:27 AM

Good riddance Abitibi Bowlwater. Don't let the door hit you in the @ss.

Posted by: rvuser on March 17 2010 12:50 PM

Eagleone, can you clarify whether you are saying a PALLET PLANT OR A PELLET PLANT?

Posted by: Palopu on March 17 2010 9:32 PM

Why would you need faster movement between the two Conifer mills. Ie; Ft St James and Mackenzie. Why would anyone go to either place. Doesnt make sense to me.

I think this road is being improved for the transportation of Ore from the Mt Milligan mine (Terrane) to Ft St James to load out on rail cars, to either Prince Rupert, or Vancouver.

Posted by: speakfree on March 19 2010 1:34 PM

AMAZING!!!Can't believe deadtowne1 didn't start a comment pile up here.I totally agree with you deadtowne1 good riddance!The company ...well few words can sum it up ignorant, ruthless,and no respect for the workers.Might just be the staffing,or over staffing we all know as pass the buck. I did a bit of searching before AB took over the operations here in Macktown.I recall one forum in which a employee had stated "they will rip the shirts right off your back",seems so true.I would like to wish Conifex the best this operation runs well when workers are given good moral and treated fairly,get some staff audits going!!!Speak to the workers ,inform the workers with updated meetings.Looking forward to working for a better company, which in hopes does not resemble the last.