Region Archives: Canada East

Corner Brook Mayor Jim Parsons says Newfoundland and Labrador Hydro isn’t providing a handout by buying Corner Brook Pulp and Paper’s electricity from Deer Lake Power. Hydro is buying power at 27.5 cents per kilowatt hour — nearly double the average domestic electricity rate — and it doesn’t need it to supply customers. ..But Parsons said they’re a very stable backup when they have problems elsewhere,” Parsons said. “Yes the rate is high, but it’s what you would pay for this kind of thing. So I think that yes, it is important that our government supports the mill in various ways, but I think it’s a mischaracterization to say this is a handout.” …”The paper industry is changing, and the mill needs change to remain current. And this is one of the ways in which they can remain current,” Goulding said. …Kruger employs 425 people with a deep trickle-down effect.

CORNER BROOK — The provincial government, through its Crown-owned utility company, is helping prop up the struggling newsprint mill in Newfoundland and Labrador by buying unnecessary electricity from Corner Brook Pulp and Paper at an inflated rate. It’s power that Newfoundland and Labrador Hydro does not need to supply customers, according to the utility company. …N.L. Hydro has confirmed that it is buying electricity from Deer Lake Power, which energizes the paper-making machines at the Corner Brook mill, for 27.5 cents per kilowatt hour. That’s nearly twice the average domestic electricity rate — 15.3 cents, when the basic customer charge is included — on the island of Newfoundland. …The power purchase agreement is just the latest attempt to save the Corner Brook mill by both Liberal and Progressive Conservative governments. …Kruger has described Corner Brook Pulp and Paper as a “vital force” in western Newfoundland’s economy.

TROIS-RIVIÈRES, Quebec — Kruger announced a $6.5-million investment to implement an innovation project aimed at diversifying production at its Wayagamack Mill in Trois-Rivières. The initiative will enable the production of innovative label paper grades, reinforcing the Wayagamack Mill’s leadership in Québec and North America. …The project was unveiled in the presence of Jean Boulet, Québec Minister of Labour and Minister Responsible for the Mauricie Region, the Abitibi-Témiscamingue Region and the Nord-du-Québec Region… and Sylvain Bricault, General Manager of the Kruger Wayagamack Mill. …The initiative was made possible by a $2.5 million funding from the Government of Québec under the Programme Innovation Bois of the ministère des Ressources naturelles et des Forêts.

NEW BRUNSWICK — Three timber firms will have a chance to convince the New Brunswick Court of Appeal that a lower-court decision should be struck in the Wolastoqey Nation’s big Aboriginal title case. On Friday, Justice Ivan Robichaud granted J.D. Irving, Limited, Acadian Timber and H.J. Crabbe and Sons leave to appeal. They all appeared last month seeking permission from the appeal court, New Brunswick’s highest, to re-examine Justice Kathryn Gregory’s decision on motions they had filed to remove them from the massive lawsuit. As is customary in such decisions, Robichaud did not offer any reasons for granting their request. The companies didn’t like Gregory’s lengthy ruling in the Court of King’s Bench last November because, although the judge agreed that the industrial defendants and everyday private property owners must be removed from the Wolastoqey lawsuit, their land was still part of the title claim.

QUEBEC — Steeve St-Gelais listened nervously on Monday as U.S. President Donald Trump listed industries he might target for tariffs. …“Will he wake up tomorrow morning and want to say, ‘Well, we’re going to do something specifically for wood’,” he wondered. St-Gelais is the president of Boisaco, a forest products company based on Quebec’s north coast that employs about 600 people and relies on the U.S. market for about 10 per cent of its business. The company’s $200 million in annual revenue isn’t enough to dominate the Canadian landscape, but it’s an economic superpower in the Sacré-Cœur community of just 10,400 people. The reason St-Gelais is so nervous is that since Trump took office four weeks ago, he’s seen a drop of about 25% in orders from Canada and the United States. His customers are buying just enough to cover their short-term needs, waiting to see if the president will take on the industry. 

QUEBEC — Premier François Legault has emerged from meetings with high-ranking Donald Trump officials convinced more than ever that the American-Canadian trade relationship will have to change, and that means Quebecers need to get used to the idea that their economy will never be the same. Pledging to nevertheless protect Quebec workers despite the challenges ahead, Legault said the two days of meetings he and the other Canadian premiers held in Washington convinced him the Americans are looking for long-term reassurances they can have access to Canadian minerals and resources. And Quebec companies, including those producing aluminum, steel and softwood lumber, are going to have to make concessions and diversify to develop new markets to compete. …“There were some very frank moments across the table,” added British Columbia Premier David Eby. “They urged us to take the president at his word.” …Legault said he’s “prepared to make compromises on aeronautics, on forestry.”

Bill MacPherson

THUNDER BAY, Ontario — Thunder Bay Pulp and Paper , a northern bleached softwood kraft and northern bleached hardwood kraft pulp, paper, newsprint and directory producer, announced the appointment of K. William (Bill) MacPherson as Chief Executive Officer, effective February 10, 2025. …MacPherson brings more than 35 years of pulp and paper industry leadership experience to Thunder Bay, most recently serving as VP of Paperboard Manufacturing for Graphic Packaging International. Prior to Graphic, MacPherson was Managing Director at Mercer International, Canada, and Mill Manager for Domtar in Kingsport, Tennessee. …“As we begin our second century of operations, I look forward to working with Bill as we strengthen our operations and build our reputation in this new era as a steadfast driver of the local economy,” said Kent Ramsay, Thunder Bay President.

THUNDER BAY, Ontario — The Anishnawbe Business Professional Association (ABPA) is “deeply concerned” about the proposed U.S. tariffs on Canadian exports and their potential to harm to the economic stability of Indigenous businesses in the oil and gas, forestry, mining, and electricity sectors. ABPA president Jason Rasevych, a member of Ginoogaming First Nation, said the business organization is urging the federal and provincial governments to work with treaty partners to ensure that Indigenous leaders are a part of the discussion to mitigate these impacts and support the resilience and prosperity of all Canadians. “Canada needs more than reactive tariffs or bailouts. We need a bold, forward-thinking strategy that makes us the obvious choice for global business,” Rasevych told The Chronicle-Journal. “That means reducing internal trade barriers and championing the strengths that set us apart.”

Ian Dunn

Cross-border quarrels between Canada and the U.S. over goods and supply are nothing new, having its roots in the pre-Confederation days of the Jay Treaty of 1794, said Ian Dunn. The president-CEO of the 51-member Ontario Forest Industries Association (OFIA) calls the ongoing fight over exported Canadian lumber to the U.S. “probably the largest global trade dispute” since the close of the Second World War. “Tariffs are not a new thing for the lumber producers and our membership,” said Dunn. …About 97% of Ontario’s forest products exports annually – amounting to $7.7 billion of trade – heads to the U.S. in the form of lumber, pulp, newsprint and structural panels. Slap on a 25 per cent tariff and that’s close to $2 billion coming out of Ontario. …Should the combination of increased duties and Trump tariffs remain in place for an extended period of time, Ontario’s forest industry would be a shadow of its former self.

LIVERPOOL, Nova Scotia — Domtar is nearing the final stages of its feasibility study for a potential new pulp mill in Liverpool, Nova Scotia. The company expects to make a public announcement in the first quarter of 2025, ahead of a court hearing in March. The decision to proceed with the project is contingent upon meeting a 14% return on investment over 20 years, as outlined in the May 2024 court-approved settlement agreement with the province. …Natural Resources Minister Tory Rushton emphasized the potential economic impact of the project. The project would also provide a market for low-quality wood and chips. …Domtar’s subsidiary company, Paper Excellence, entered into a settlement with the provincial government following the closure of the Northern Pulp mill in 2020. As part of the settlement, which resolved a $450-million lawsuit filed by Paper Excellence against the government over closure, Domtar agreed to explore the viability of opening a new mill in Liverpool.

NOVA SCOTIA — Forest products that are grown, harvested, crafted or manufactured in Nova Scotia will soon be marketed through the Nova Scotia Loyal program. The program, which launched last July, gives Nova Scotians more points on their existing loyalty rewards program for buying local goods. The Nova Scotia government says forest product producers can enrol in the program and will be automatically approved. “We want to make buying local easy and clear when it comes to our forest products,” said Minister of Natural Resources Tory Rushton. Products under the Nova Scotia Loyal program are labelled to help consumers easily identify them. …“Nova Scotia Loyal is a great opportunity to showcase these wonderful products and help people support our businesses across the province,” said Todd Burgess, executive director with Forest Nova Scotia.

NEW BRUNSWICK — The Wolastoqey Nation’s title claim for more than half of New Brunswick was in court again Friday, this time because three timber firms are upset about a lower court ruling that did not explicitly state their land won’t be taken from them someday. J.D. Irving, H.J. Crabbe and Sons, and Acadian Timber each presented separate motions before the Court of Appeal of New Brunswick , asking it to revisit a decision by Justice Kathryn Gregory. Although Gregory agreed that the industrial defendants must be removed from the lawsuit, their land is still part of the title claim. She also wrote in her judgment that in the future it’s possible the Crown could expropriate their property and give it to First Nations communities. …”This is the most important case of our lifetime,” Hugh Cameron, lawyer for Acadian Timber, told Justice Ivan Robichaud. …Robichaud reserved his decision on the leave to appeal.

Ian Dunn

THUNDER BAY — Anxiety about tariffs still looms over the forest industry, despite the Canada-U.S. trade war being delayed 30 days. “There’s a great deal of concern. The 30-day reprieve is welcome, but effectively, it means nothing until it’s been resolved,” said Ian Dunn, chief executive officer of Ontario Forest Industries Association. …“Tariffs have – and duties are already having an impact. Sawmills in the area have had a reduction of shifts. There have been layoffs. In other regions of the province, there have been closures in the sawmilling industry. There’s also been the idling of very important anchor mills in Terrace Bay and Espanola,” Dunn said. “I think in a lot of respects the damage has already been done. If you’re a multinational company looking to invest, you’re going to sense a lot of uncertainty in the marketplace right now. You would lose a lot of confidence in the Canadian-U.S. relationship,” he added.

Related coverage in CBC: Ontario’s forestry sector can’t withstand more tariffs, says industry association

Representatives for two large exporters in Nova Scotia say they’re ready for U.S. import tariffs, even though they were delayed on Monday just before they were to be implemented. Mike Hartery, co-manager of the Port Hawkesbury Paper mill, said the company had been waiting Monday afternoon to find out if the promised 25 per cent import tariff would kick in on Tuesday. …Hartery said tariffs would drive up paper prices for American customers and could force those buyers to scale back their orders from Canada. He said the mill is scrutinizing its costs, which could mean buying less wood from suppliers in Nova Scotia forests. …The company will press ahead with a $400-million investment in a stand-alone wind power project to supply the mill with electricity, but that does not mean the company expects tariffs, if implemented, to be temporary.

Additional coverage in CTV by Emma Convey: Atlantic Canadian forestry sector concerned with impact of tariffs

Audra Denny

OTTAWA, Ontario — The Wood Manufacturing Council announced the appointment of Audra Denny to the role of president. Denny, who most recently served as executive director of the Architectural Woodwork Manufacturers Association of Canada, will be responsible for the effective and efficient management of the WMC, ensuring the execution of the board’s strategic direction and policies to achieve desired outcomes. …Denny succeeds Lynn MacKinlay, who returned to Georgian College in Barrie, Ontario, as the coordinator of Carpentry and Renovation Techniques, and Cabinetmaking Techniques. The WMC is a non-profit corporation that works to bring together stakeholders in advanced wood processing to help collectively address human resource and skills development issues in the sector.

While a 30-day postponement of U.S. tariffs on Canadian goods has paused an escalating trade war, there is still concern in Northwestern Ontario. Thunder Bay-Atikokan MPP Kevin Holland said the proposed 25 per cent tariffs could have a devastating effect on the Canadian forestry industry. “I’m concerned,” Holland said. “We’re at almost 15 per cent tariffs on softwood lumber and by example, there’s talk that in the Quarter Three of 2025, the U.S. is looking at doubling that. Then put another 25 per cent on and we’re going to have 55 per cent tariffs on softwood lumber.” …“They need Canadian lumber and we need to make sure that we’re communicating the importance of the partnership [and its value] for both countries.” “A 25 per cent across-the-board tariff will result in significant economic effects,” Economist Di Matteo said. “In Northern Ontario, the resource sector will particularly be affected — forestry and mining.”

As Ontario braces for a snap provincial election called by Premier Doug Ford, the languishing forest industry in rural and Northern Ontario remains a critical yet overlooked issue. The closure of major pulp mills in Espanola and Terrace Bay have dealt a severe blow to the region’s economy, with far-reaching consequences that demand immediate attention. …With only two pulp mills remaining operational in Ontario, the forest sector is at a critical juncture. The lack of product diversity and mutual support among mills threatens the survival of the entire industry. …While the cost of rebuilding these facilities would be substantial—estimated at over $500 million each—it also opens the door for modernization and innovation. Ontario now has a unique chance to re-imagine its forest sector, potentially introducing new, state-of-the-art pulp mills. …Such an investment would not only revitalize the forest industry but also provide a much-needed economic boost to Northern Ontario.

In the face of threats of U.S. tariffs on Canadian goods, Kruger-owned Corner Brook Pulp & Paper on Newfoundland’s west coast is looking at a redux from seven years ago when tariffs were slapped on its newsprint. However, advocates say the situation will be different this time around. This isn’t the first time the company has faced down tariffs implemented by Donald Trump. In 2018 the mill was hit with an export duty of 9.93 per cent on groundwood paper, followed by a 22 per cent anti-dumping duty, for a combined 32 per cent. Kruger stood to lose about $30 million a year, though the tariff was eventually overturned. But as a result, the company began to look away from selling south of the border and instead to markets in India to avoid fees. Kruger spokesperson Marie-Claude Tremblay refused an interview request from CBC on how the company could be impacted in the latest round of tariffs…

TORONTO – In the face of rising international protectionism and the looming threat of U.S. tariffs, the Ontario Chamber of Commerce has launched the Ontario Business & Trade Leadership Coalition (OBTLC). This Coalition unites leaders from key trade-dependent sectors to… advocate for effective government policies and solidify Ontario’s position as a global leader in trade. “President Trump has claimed the U.S. doesn’t need Canada – but we are here to show just how invaluable we are. …The Ontario Business & Trade Leadership Coalition represents a united response,” said Daniel Tisch, President and CEO of the Ontario Chamber of Commerce. …Ian Dunn, R.P.F., President & CEO, Ontario Forest Industries Association said, “Ontario’s forest sector is highly exposed to trade, employing 137,000 people in northern, rural, and Indigenous communities. We are united with our colleagues throughout the province to protect our industries and the communities that rely on their success.” 

The Nova Scotia government has a green light from Ottawa for its $425-million plan to remediate Boat Harbour, but it comes with a long list of conditions that includes continuing to look for another site to store contaminated sludge in the long term. Federal Environment Minister Steven Guilbeault issued his decision last Friday following an environmental assessment by the Impact Assessment Agency of Canada, work that began almost six years ago for the cleanup of the body of water near Pictou Landing First Nation that for decades received effluent from the Northern Pulp mill. Under terms of the approval, an existing on-site hazardous waste containment facility would be vertically expanded. …The cleanup project follows the shutdown of the former Northern Pulp mill at Abercrombie Point in 2020. …Northern Pulp’s parent company is currently exploring the potential of establishing a new operation in the Liverpool area.

The Ontario government is stepping up to protect Ontario workers in the face of potential American tariffs on Canadian goods by investing an additional $100 million in the province’s Skills Development Fund (SDF) Training Stream, bringing the total provincial investment in SDF to $1.5 billion. This investment will support workers in fields including manufacturing, construction, critical mineral extraction and other skilled trades, providing them with the skills and training they need to secure better jobs and bigger paycheques while protecting Ontario’s economy… “The Ontario Forest Industries Association welcomes additional investment in the Skills Development Fund,” said Ian Dunn, President & CEO. “This commitment will help ensure workers in Ontario’s forestry sector—and across the province—are equipped with the skills and training needed to thrive in an increasingly competitive global market. By investing in our forestry workforce, Premier Ford’s government is strengthening our economy and supporting industries that are vital to Ontario’s growth and resilience.”

KAPUSKASING — The Ontario government is providing a $10 million loan to Kap Paper Inc., protecting approximately 2,500 jobs in Kapuskasing and the surrounding region which depend on the company’s ongoing operation. “Our government is ensuring Ontario’s world-class forest sector continues to build prosperity for Northern workers, families and communities,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “This financial support delivers on our government’s commitment to forest sector success by protecting jobs and maintaining productivity in Kapuskasing.” Kap Paper is a key employer for Kapuskasing and a vital part of Ontario’s forest sector supply chain. Operations at three nearby sawmills depend on Kap Paper to provide demand for mill by-products generated by lumber production. …The loan will support Kap Paper’s ongoing operation during challenging market conditions.

Toronto, Ont.—Ontario Regional Chief Abram Benedict has issued a statement on the relationship between Canada and the United States: I wish to congratulate President Donald Trump on his recent election. I also want to make clear to his government, all levels of Canadian governments, and to Ontario First Nations Leadership, that the Chiefs of Ontario will continue to advocate for the rights and interests of all 133 First Nations in Ontario. …President Trump has made threats to Canada, including annexation of the country and coercion through economic force. For First Nations, it echoes the colonial rhetoric that we’ve dealt with for centuries. …Engaging in costly economic confrontations or extracting natural resources cannot come at the expense of First Nations’ inherent and Treaty rights nor our sovereignty. Rather, it must be done in collaboration and with the spirit of reconciliation. There are no natural resources in this country that are not on First Nations’ lands. 

AV Group Canada, which runs pulps mills in Nackawic, just west of Fredericton, and in Atholville near Campbellton in the province’s north, warns that NB Power’s rates are making it uncompetitive against other firms around the world. Irving Paper says it will reduce operations at its Saint John mill again by half, to deal with the high electricity cost, for an undetermined period. “The current situation regarding escalating power costs… has serious consequences for our facilities,” said Mike Legere, for AV Group Canada. The company employs 1,200, making it the dominant player in both small towns. Energy makes up one-quarter of AV’s input costs at its pulp mills, second only to wood fibre, he said. …And Irving Paper said it welcomed the third-party audit. Since last April, when rates went up, it has warned that New Brunswick’s industrial rates are having a negative impact on the provincial economy. 

QUÉBEC – The Port of Québec’s Board of Directors is pleased to announce the appointment of Olga Farman as CEO, succeeding Mario Girard’s fourteen-year service in that position. As a member of the Board since 2020 and its Chair since last June, Me Farman, who will take office on February 1, 2025, understands the realities and challenges of the Port. …Ms Olga Farman was a corporate lawyer, until very recently, the managing partner of the Québec office of Norton Rose Fulbright Canada. She is also a member of the Board of Directors of the Caisse de dépôt et placement du Québec, Beneva, insurance & financial services, and the Fondation du Musée de la civilisation de Québec. Ms. Farman is a member of the Québec Bar and holds a Bachelor of Laws (LLB) degree and an MBA from Université Laval. She has received multiple awards and distinctions throughout her remarkable career.

NOVA SCOTIA — U.S. President Donald Trump has only been back in office for a day, but he’s already suggested moving ahead with 25 per cent tariffs on Canadian imports. “I’m not sure anybody knows what the impact would be,” said Robin Wilber, Elmsdale Lumber Company president. “Everybody’s coming up with their own thoughts on it, but I think that will remain to be seen, but I know it will be huge.”Elmsdale Lumber Company produces 30 million board feet of spruce lumber each year. Most of it stays in the Maritimes, but Wilber said some is shipped to the United States. Nova Scotia is currently exempt from American softwood lumber duties, but Wilber worries that could change. “We run the risk of losing that exclusion, and that would be massive.” He said Canadians won’t be the only one impacted by the proposed tariffs. It could also cause major issues for American consumers…

U.S. President Donald Trump did not announce any tariffs against Canada during his inauguration on Monday but mused late in the day about introducing them on Feb. 1. …Almost half of the wood that is harvested from their woodlots in northern Nova Scotia ends up being exported to the U.S. “Any more downward pressure, I don’t know how much more we could take before it makes sense just not to cut wood,” Greg Watson said. …Forest Nova Scotia estimates the industry exports about $600 million in forest products to the U.S. every year. It estimates the implementation of tariffs could carry a severe impact. “You would see businesses go out of business,” said Todd Burgess, the organization’s executive director. “You would see contractors go out of business. You would see job losses. You would see mills curtail their production.”

RAPIDES-DES-JOACHIMS, Quebec – Commonwealth Plywood, originally expected to close in December 2024, continues to operate into 2025, but its long-term future remains uncertain as the company evaluates its viability on a monthly basis. While the mill’s continued operation has brought relief to the local community, significant challenges persist. Joël Quevillon, VP of forestry at Commonwealth Plywood said, “The situation is reviewed monthly, but we hope to continue until spring,” Quevillon wrote. “Our ability to operate depends on fibre availability, fibre costs, the market price for our products—primarily white and red pine—and the mill’s performance.” He noted improved performance during late 2024 allowed operations to extend into the new year. …While the company hasn’t requested financial assistance, Quevillon acknowledged the precarious situation. “We’ve had to issue closure notices to employees because the necessary changes aren’t happening quickly enough,” he said.

New Brunswick’s J.D. Irving Limited is calling on the province’s labour board to block the workers at one of its sawmills from being represented by a union it says actively lobbies in favour of punishing tariffs on Canadian lumber at the border. …It makes that argument in a reply to an application for union certification that states that the United Brotherhood of Carpenters and Joiners of America, Local 683, is seeking to represent 321 employees at its at its Chipman Grand Lake Timber mill. The carpenters’ union is denying J.D. Irving’s allegations. In a statement, it said Local 683 “opposes tariffs on softwood lumber”. …workers at the Chipman mill already have a union representing them. …Unifor added that the carpenters and joiners of America are now “attempting to raid this local. …Trump also said he plans to use ‘economic force’ to annex Canada, so the timing is suspicious for an American labour union that has previously spoken in favour of lumber tariffs to be raiding Canadian forestry workplaces.” [A subscription to the Telegraph-Journal is required to read the full story]

HALIFAX – A Cape Breton paper mill says a federal investment in 24 new wind turbines completes the financing of a project that will secure its future electricity needs. The Canada Infrastructure Bank has announced it will provide $224.2 million in loans for Port Hawkesbury Paper Wind Ltd, which will supply about 60% of the average annual power needs of its sister company, Port Hawkesbury Paper. Nigel Cave, the VP of Stern Partners, said that the $450 million project, called Goose Harbour Lake wind farm, is now fully financed. The wind farm, which will be 10 per cent owned by 13 Mi’kmaq First Nations, will be capable of generating 168 megawatts of electricity once the turbines begin operating in late fall 2026. …In total, the wind farm is expected to reduce greenhouse gas emissions by more than 350,000 tonnes a year, equivalent to 2.4 per cent of Nova Scotia’s emissions in 2021.

Additional coverage in the Guysborough Journal, by Alec Bruce: Green light for $450M Goose Harbour Wind Farm