Region Archives: Canada East

The Ontario government is protecting people and jobs in northern, rural and Indigenous communities, while supporting long-term forest sustainability, by investing in protective measures to stop the spread of COVID-19 during the upcoming tree planting season. John Yakabuski, Minister of Natural Resources and Forestry, announced the government is making $3.5 million available to help put protective measures in place for the workers who plant trees this season. …”With these measures, we are also securing the planting of 70 million trees this year in Ontario’s forests.” Funds will be used for larger camp facilities and additional kitchens to provide more space, as well as extra personal protective equipment, plastic partitions for transporting workers and more wash stations.

Derek Nighbor

The Forest Products Association of Canada is trying to paint a picture of how the industry and workers are managing through the current COVID-19 crisis. President and CEO Derek Nighbor recently provided an update to the House of Commons Standing Committee on Finance. “Pulp markets are doing pretty well given the demand. Lumber markets are struggling and writing and printed paper markets are struggling, as well,” said Nighbor. …Nighbor said they have embraced the essential business designation, stressing it is important to keep the supply chain going. However, he notes there are concerns of outside influences. “I get nervous watching the U.S. response to COVID and this want to open everything up right away because if U.S. housing starts fall off, as they have, in a big way, that’s a big hit to our lumber markets,” he said.

KINGSEY FALLS, Quebec — Cascades Inc. reported first quarter sales of $1,227 million, up 7% from Q4 2019 and 7% from Q1 2019. Adjusted operating income of $90 million compares to $75 million in the previous quarter and $68 million in Q1 2019. …Mr. Mario Plourde, CEO, commented: “This reflected improvements in all business segments, most notably in Tissue, European Boxboard and specific Specialty Packaging products as a result of consumer buying patterns related to Covid-19 and strategic actions taken in recent quarters. Sales growth of 7% year-over-year was largely driven by increases in Tissue, which benefited from higher volumes and favourable average selling price, sales mix and exchange rate. Containerboard sales also increased year-over-year.

MONTREAL, Quebec — Stella-Jones announced financial results for its first quarter ended March 31, 2020. …Sales for the first quarter reached a record $503 million, up $62 million, or 14%, versus sales of $441 million last year. Pressure-treated wood sales rose by $59 million while sales for logs and lumber increased by $3 million. …“We had a solid start to the year with sales up a robust 14%. Sales growth for our pressure-treated wood products was supported by stronger demand for utility poles and residential lumber, and improved pricing for utility poles and railway ties,” stated Éric Vachon, President and CEO of Stella-Jones.

VANCOUVER, BC — Acadian Timber Corp. reported financial and operating results for the three months ended March 28, 2020. …Acadian generated sales of $31.4 million compared with sales of $30.9 million during the prior year period. …Adjusted EBITDA and Adjusted EBITDA margin for the first quarter were $8.3 million and 27%, respectively, compared to $8.9 million and 29%, respectively, during the prior year period with the decrease primarily due to lower margins from the operations in Maine. The net loss for the first quarter totaled $3.7 million compared to net income of $6.2 million in the same period of 2019.

John Pineau

Kemptville, Ontario – The Board of the Ontario Woodlot Association (OWA) is pleased to announce the appointment of John Pineau as Executive Director effective May 4, 2020. John brings extensive experience working in non-profit organizations to the OWA, as well as significant time in progressively responsible positions in industry and government during a career spanning over 35 years. Most recently, John was employed as Provincial Leader Ontario for FPInnovations, a Canadian non-profit dedicated to research across the forest and wood products value chain. Prior to this he served as Executive Director of the Canadian Institute of Forestry (CIF) from 2006 to 2014. John also worked for the Forestry Research Partnership as Science Extension Manager from 2000 to 2006. Early in his career, he worked for the Ontario Ministry of Natural Resources from 1979 to 1994 in a variety of capacities and locations across the province. 

A tiny B.C. logging contractor is fighting a whopping $15-million bill from the province to cover the cost of fighting a wildfire that ripped through the Peace region in 2016.  J. Sarver Trucking Ltd. — a company essentially made up of owner Jon Sarver — was handed the tab in April 2019, but details of the case are only emerging now because of an interim decision related to an appeal.  The bill consists of $12 million for firefighting costs, $3.7 million for damage to Crown timber and a $20,000 administrative penalty for allegedly causing the blaze in the first place.  Sarver’s lawyer said the magnitude of the order is unprecedented.   And it would ruin the 100 Mile House man.  “I have never seen a claim of this size or anything close to it, quite frankly. It is a very large claim,” said Greg Tucker, the head of Owen Bird’s insurance group.

In a sweeping effort to tackle homelessness in Toronto, the City has announced it will be moving forward with its $47.5 million plan to build 250 modular housing units to help those living in the shelter system. The City announced the details of the supportive housing initiative on Wednesday, which will see the creation of 110 modular homes on two City-owned sites by September 2020. Horizon North, which recently constructed similar facilities in Vancouver, is the company set to design and build the units. …Modular housing can be constructed more quickly than permanent housing because the materials are prefabricated in a factory and then transported to the site where they can be assembled at a lower cost and in a shorter timeframe than traditional housing construction models.

A wood products company donated more than half of its KN95 mask supply to health-care organizations across Northern Ontario. EACOM Timber Corporation’s donation will help eight different organizations across the North alleviate pressure on medical supplies due to COVID-19. The Nairn Centre sawmill received 800 masks that have been donated to the Espanola Regional Hospital and Health Centre. Gogama received 300 masks, which have been given to Gogama Paramedic Service’s station, and Elk Lake received 600 masks, which have been given to Temiskaming Hospital and Ambulance Service. Ear Falls, Sault Ste. Marie and Timmins have also received donations, bringing the total number of masks donated to almost 3,500. …”It is our privilege to share what supplies we can all the while ensuring that our employees are properly protected,” said EACOM President and CEO Kevin Edgson.

Karl Blackburn

The world has changed in the last few weeks. …But what’s it like for large companies operating production facilities in the forest products industry? I interviewed Karl Blackburn, Public Affairs for Resolute Forest Products, to learn about their approach to the crisis. First of all, Resolute is making sure it respects government directives and guidelines. …Resolute’s head office in Montreal is physically closed but operating fully, with employees working from home. Activities such as meetings and training sessions take place virtually. For employees at Resolute’s production sites… measures are in place to preserve social distancing. If employees need to be less than 2 m apart, the use of personal protective equipment is required. Visual guides have been developed and posted to provide instruction on procedures such as hand washing protocols, social distancing and disinfection of equipment used by multiple employees. 

Northern Pulp has been given a clearer idea of what the province is looking for if the pulp company is to reopen in Pictou County. On April 28, the province has released the final terms of reference for the Northern Pulp environmental assessment report. “This document provides a roadmap for the company to follow as it works to submit an environmental assessment report,” said Environment Minister Gordon Wilson. “Once that report has been submitted, I am open to considering whether an environmental assessment panel should be appointed.” Northern Pulp now has up to two years to submit the report on its proposed new effluent treatment plant. Northern Pulp has indicated its desire to reopen the now hibernated factory, but said that it needed clear guidelines from the province. 

KINGSEY FALLS, ON – To mark Earth Day’s 50^th anniversary, Earth Day Canada and Earth Day Initiative, in collaboration with Corporate Knights, have released the 50 Top Business Moves for the Planet. Cascades is pleased to be included on this list for its pioneering role in recycling. The Company’s strong dedication to promoting recycled fibres in the manufacturing of its products played a key role in this decision. “In the 1950s, we could not have foreseen that the simple idea of diverting material from landfills to recovery would go so far. By giving new life to this material, we reduce the pressure on natural resources and minimize waste. Even though the idea wasn’t popular at the time, I am very proud that we were true to our values and ideals, and continue to honour them today” said Alain Lemaire, co-founder and Executive Chairman of the Board of Directors of Cascades.

Canada’s struggling forestry companies and its hard-hit sawmilling sector need federal support to get them through to the end of this year. The crash of lumber prices, the pandemic-related halt to the North American economy, combined with the pain felt by softwood lumber tariffs over the last two years has many industry players facing a “brutal” next couple of financial quarters, said Derek Nighbor, president-CEO of the Forest Products Association of Canada. …“We just need some help to keep our heads above water and keep as many people working as possible over the next few months,” he said. “The rest of 2020 is going to be about survival.” In recent weeks, lumber markets have plunged with a nearly 40 per cent drop in prices, causing the temporary closure of 39 sawmills across Canada, including 24 in British Columbia.

WHITE RIVER, Ontario — A slowly improving lumber market is expected to lead to the resumption of production at two northwestern Ontario sawmills later this month. White River Forest Products and Hornepayne Lumber were both shut down on March 27, putting about 300 workers off the job. The operations are owned by WRC Timber. WRC president Tony Wyszkowski says COVID-19 caused the lumber market to “fall apart” after construction activity ground to a halt. “What demand there was left, the pricing just fell through the floor,” Wyszkowski said. …Lumber prices are stabilizing, Wyszkowski said, so the company currently plans to restart the planer line and sawmill at Hornepayne on April 20, and the mill at White River on April 27.

For the first time in her life, the chief of Pictou Landing First Nation says she can’t smell the familiar stench of effluent being dumped into Boat Harbour. It’s been nearly three months since the Northern Pulp mill in Abercrombie, N.S., shut down and stopped sending effluent to the harbour that surrounds the First Nation. Some wastewater from the mill is still ending up at the Boat Harbour treatment facility, but Northern Pulp said this week that all liquid waste will stop going there by the end of the month. The water at Boat Harbour used to look dark and foamy after decades of being a dumping ground. But Chief Andrea Paul posted a drone video of the settling ponds on Twitter this week that shows many of the aerators have been shut off and the foam has largely subsided. 

SHERBROOKE, Nova Scotia – Rocked by shuttered markets, battered by plunging demand at Nova Scotia’s only paper mill, and cratered by COVID-19, St. Mary’s independent forest sector is hanging on by a twig, area harvesters say. “This is the worst it’s been in 40 years,” contends Luke McGrath, partner in L & E McGrath Bros. of Aspen. …The story is much the same across this heavily forested region, where as many as 300 people work full-time in silviculture and harvesting, as well as trucking, road building and other woodland- related jobs. …The troubles began when Northern Pulp in Pictou shut down, leaving Port Hawkesbury Paper the sole remaining market for a sudden oversupply of wood chips and logs in the province. Last month, following public health measures imposed to slow the spread of COVID-19, Port Hawkesbury Paper stopped buying wood altogether.

A fire broke out at Cap-Pelé Sawmill Ltd. on Wednesday around 8:15 a.m., according to a source close to the business. One of the employees noticed smoke in the shop and alerted the others to get out, said Julie Doiron, whose husband works at the sawmill and whose father in law owns it. Everyone is safe, Doiron said. The fire department was called, she said, but firefighters were not able to contain the fire. The building will most likely be a complete loss, she said. Firefighters from several departments were called to help.  Cap-Pelé Fire Chief Ronald Cormier said the fire is under investigation but is not considered suspicious. He was not able to confirm how the fire started. 

TORONTO — Unifor members at Sonoco paper mill in Quinte West, Ontario, have been told their mill will close in June of this year due to ‘market conditions’ despite the parent company making a massive $83 million investment in its South Carolina operation. “The market for the kind of cardboard products made at this mill have never been in higher demand, so I refuse to believe this move is anything but an attempt to line shareholders’ pockets,” said Jerry Dias, Unifor National President. “The timing could also not be worse as so many families are already struggling with job loss due to COVID-19. This is horrible news for this community and for the forestry sector in Ontario.” Unifor represents 81 workers at the Sonoco paper mill.

ONTARIO — A long-standing business in Quinte West is closing its doors. Sonoco announced it is closing its recycled paperboard plant on Bernard Long Road in Trenton on June 12. Sonoco’s Board of Directors said it approved an $83 million investment to strengthen its uncoated recycled paperboard mill system in the US and Canada. Much of the investment includes transforming its Hartsville, South Carolina corrugated medium machine into a state-of-the-art URB machine with an annual production capacity of approximately 180,000 tons. …Quinte West Mayor Jim Harrison said ‘it’s unfortunate the company chose to spend all its money in the US.’ …Harrison stated he has reached out to Ontario Premier Doug Ford, Bay of Quinte MP Neil Ellis, MPP Todd Smith and the Quinte Economic Development Commission for help.

The Environment Department is expected to publish Monday the new hurdles Northern Pulp must jump in order to be allowed to build an effluent treatment facility.  The terms of reference for the Environmental Assessment Report will be the latest step in a long-running and contentious saga over the Pictou County kraft pulp mill’s waste.  The mill was idled at the end of January after Environment Minister Gordon Wilson found the focus report it had filed wanting.   When Premier Stephen McNeil refused to extend the Boat Harbour Act beyond the end of January, many thought the half-century-old pulp mill would shutter permanently.  Elmsdale Lumber president Robin Wilber was kicked off the committee set up by the province to help the forestry sector find a new path without the mill as a destination of its wood chips after he suggested Northern Pulp might be saved. [We respect the copyrights of the source publication – full access may require a subscription]

Western Nova Scotia’s last major sawmill is shutting down. Freeman Lumber announced Thursday that the Greenfield-based outfit could no longer afford to operate due to a lack of markets for wood chips following the closure of the Northern Pulp mill earlier this year. The move means the loss of about 150 jobs, millions of dollars in the local economy in Queens County and surrounding areas and spillover into the broader forestry industry. “It’s terribly troubling,” co-owner Richard Freeman said in a phone interview. “Many of these people we’ve dealt with for generations. We deal with people I can remember my grandfather dealing with. These people are like family to us and it’s heart-wrenching.”

At 4:38pm yesterday, Northern Pulp sent out a two-page statement to media. That’s right; moments after provincial employees would have gone home… and after many journalists would have logged off for the long weekend, Northern Pulp / Paper Excellence decided the time was right to issue a statement. Its headline read: Northern Pulp prepared to invest in modernizing mill and revitalizing Nova Scotia’s forestry sector. As if just yesterday the company suddenly came to the conclusion that it was prepared to modernize the 53-year-old pulp mill that has been in hibernation since January, and decided that it had to tell the world.  …Rather than wait for the government to finalize the TORs, however, Northern Pulp decided to issue a statement to the media. …Although the statement says Northern Pulp is “requesting” these terms, it reads very much like an thinly-veiled ultimatum.

A fund dedicated to addressing urgent community needs in Thunder Bay during the COVID-19 pandemic has received two major donations. Resolute Forest Products’ Thunder Bay pulp and paper mill and sawmill have announced a joint $25,000 donation to the Thunder Bay COVID-19 Community Relief Fund. Another donation of $25,000 was also announced Tuesday, this time coming from the J. Armand Bombardier Foundation. …It’s designed to provide grants to front-line organizations — such as Shelter House, or the Regional Food Distribution Association — that in turn provide basic needs to people affected by the COVID-19 pandemic.

VALLEY, Nova Scotia — Production has resumed at the Irving sawmill in Valley, following a temporary shutdown after three workers were diagnosed with COVID-19. Mary Keith, vice-president of communications, said the start up was to occur at 6 p.m. Monday evening with approval from the Nova Scotia Department of Labour. Verbal screening of each employee is now required and workers must also pass through an infrared temperature camera before entering the worksite. Keith said the mill has also undergone “extensive cleaning and disinfection” by independent emergency response professionals. The mill had been closed since April 1 after two employees tested positive for the coronavirus. Those employees remain away from the workplace as they await the COVID-19 test results.

NOVA SCOTIA — Those who supply this province’s second largest sawmill are warning that unless a market is found quickly for its woodchips, Harry Freeman and Son Ltd. will close. …Freeman’s has about a month and a half worth of lumber yet in its yard and the chips are piling up. The mill, which employs about 160 people, used to sell its wood chips to Northern Pulp in Pictou County. …“This shutdown is not to do with COVID-19. That is what (government is) using as a scapegoat,” said Colin Hughes, owner of Colin Hughes Forestry. “If (government) wouldn’t have shut Northern Pulp down then this mill wouldn’t be facing a closure. …The forestry industry has argued that Emera’s Brooklyn Pulp and Power could operate as a temporary solution. …So far the provincial government has declined to legislate it to be a “must run” facility. [we respect the copyrights of the source publication – full access may require a subscription]