Mackenzie Pulp Mill Winding Down

Tuesday, May 06, 2008 06:27 AM

Prince George, B.C. - Another blow to Mackenzie. The Pulp mill, owned by Pope and Talbot is closing.

Bankrupt Pope and Talbot failed to get its creditors to agree to extend financing, and the deal with Pindo Deli ( a division of Sinar Mas) to purchase the Mackenzie pulp mill and two others fell through.

The collapsed deal with throw 251 people in Mackenzie out of work, and near Nanaimo, another 535 employed at the Harmac Mill will be without a job.

A third mill, at Halsey Oregon, is also going down.

Pope and Talbot is still trying to work out a deal with Sinar Mas, and it may see the mills sold individually rather than as a three mill package.

The collapse of the deal for the pulp mills has no effect on the purchase of the Ft St. James sawmill.

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Posted on Tuesday, May 06, 2008 06:27 AM in News by 250 News

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Comments

Posted by: justamom on May 6 2008 9:07 AM

I think in the end the Mackenzie pulp mill will survive. The market is good in pulp and I can see Sinar possibly purchasing this mill. If not I dont think it will be down long. Breaking up the clusters is a good idea. I understand they (pope and talbot) are back in court on wednesday so we should know more info then. Hopefully.

Posted by: Andyfreeze on May 6 2008 9:09 AM

Apparently the deal for the Fort St.James mill has in fact expired, but P&T and Sinar Mas are continuing to try and reach an agreement.
That came from P&T yesterday.
I might have missed something here,but why are P&T doing the negotiating on this deal?
I thought that was the receivers job?
I also saw on last nights news that the Harmac deal is also in big trouble in Nanaimo.
What a damn mess!

Posted by: invisableman on May 6 2008 10:54 AM

Lets get a GOOD coporate citizen.Maybe a shutdown an new buyer is in order. Take look at what this buyer stands for.A 100 million dollar judgement by the U.S government does not sound like real up&up people.Why did they wait till now to pull he pin.This was known for some time now.

Posted by: Andyfreeze on May 6 2008 11:07 AM

Prince Rupert also had a go around with these clowns over the old pulp mill there recently.
I am unsure of what the status on that deal is at this time,but as far as I have heard, it is dead.
Even if they do manage to pull off the deal for FSJames,it will not exactly leave anyone working there with a feeling of confidence for the future!
Seems the only news on this outfit is BAD news!

Posted by: He speaks on May 6 2008 1:51 PM

Big difference, Prince Rupert, the mill was 70 years old. BCFP in Mackenzie was built in the 70's, thus it is only 35 years old.

Repap in Rupert, were a bunch of crooks. Meanwhile Pope and Talbot run into a bad lumber market, which sucked the company dry.

The mill be bought by someone. My money is on Carrier Lumber or the Novaks.

Posted by: snowflake on May 6 2008 6:19 PM

Ya Pope & Talbot in Mackenzie is not as old as the mill in Rupert but it needs millions of dollars of work!! Is someone that buys it prepared to sink $20 more million into the place? I dunno doesn't look good to me. I live in Mackenzie and things are gloomy right now! If people can hold out for a year or so
Mount Millighan might take off and that would help the economy of this town.. If not well you figure it out!!!

Posted by: jus cuz i can on May 6 2008 6:52 PM

Just a suggestion....
Why doesn't the Mcleod Lake Indian Band
buy the mill. Isn't there funding available from governments? What an opportunity for the band and other investors if need be.

Posted by: Andyfreeze on May 6 2008 9:40 PM

I am not talking about Repap in Rupert.
That's long ago.
Asia Pacific were the last bunch of liars to take a run at it quite recently.
Turns out, they were full of bullsh**t too.
There had been upgrades to some areas of the mill in the last 20 years,(B line)and they originally were going buy it for salvage,then decided maybe they could run it.
Didn't quite go that way after a lot of pissing around.
All a big show to get something for nothing.