Eurocan Gets Extension

Friday, June 04, 2010 03:56 AM

Kitimat, B.C.- The Eurocan Viability Group, headed up by the CEP Union local, has been given another 30 days to try and find an investor for the mill.

The mill shut down in late January when West Fraser said it was no longer viable.

The Union and West Fraser met earlier this week as the union was hoping it could convince West Fraser to give it more time to find investors before removing any of the critical assets.

West Fraser has already removed some mobile assets from the site, but has agreed to hold off for another 30 days before it moves any assets critical to the mill's operation off the property. The Union has secured a fibre supply and has a report which concludes the mill could return to profitability in five years with one paper machine running.

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Posted on Friday, June 04, 2010 03:56 AM in News by 250 News

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Comments

Posted by: theviewuphere on June 4 2010 5:17 AM

So some hope remains maybe? Is the union willing to look at wage and benefit changes that may make it more viable for a new investor?

Posted by: Mercenary on June 4 2010 7:51 AM

I admit that I don't know a whole lot about Eurocan and what type of paper it produced but I do hope they don't want to make newsprint. If ever there was a dying industry to avoid it would be the newsprint industry. Fewer and fewer people are buying newspapers anymore.

I wish nothing but the best to those folks out there. Keep fighting the good fight.

Posted by: Eagleone on June 4 2010 7:10 PM

I think the government wants the revenue from Enbridge more than the jobs from Eurocan... Bureaucrats in Victoria and Vancouver could care less about jobs in Kitimat if it means government revenue to pay their pensions is not going to be maximized.

Posted by: Palopu on June 4 2010 8:42 PM

Eurocan produces brown sackkraft paper, which is used for paper bags, primarily, and also linerboard which is used for cardboard boxes.

This type of paper does not get the best prices. A number of sack kraft paper mills have closed down over the years.

I think any hope of this mill remaining open is slim at best. If there was money to be made they would have kept the mill running.