Nanaimo Feeling Forestry Industry Pinch

By 250 News

Another Community is feeling the impact of a slumping forest industry.

Pope and Talbot has announced it is temporarily cutting one shift and  the 70 people who work that shift at their pulp mill in Nanaimo.  The company says it has made this decision because of a reduced supply of affordable  fiber in the coastal region brought on by reductions in lumber production and the high  value of the Canadian dollar.  

The company says  the Steelworkers coastal strike will only make things worse in the short term.

 The move is expected to reduce the production at the facility by approximately 17% and impact up to 70 mill employees.

"Given the external conditions, there is only so much affordable fiber available to us. That which we can cost-effectively procure, must go to honoring contracts with our key customers," says Pope and Talbot CEO Harold Stanton. "While this will be tough news for some of our employees, we do have the flexibility to return to full capacity as conditions improve."

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