Region Archives: Canada East

Jamie Lim

In an unprecedented time of global uncertainty, Ontario’s forest industry is continuing to provide employment and materials vital to the supply chains provincially and beyond. “Ontario was actually the first jurisdiction in Canada to declare forestry an essential workplace,” said Jamie Lim, president. …“We’ve got to ensure the supply chains that are in place in Ontario, are providing that processed wood fibre that is going into sanitary products and personal protective equipment and we’re an important part of that,” Lim said. …Lim noted it was “wonderful” to hear of companies, such as the EACOM Timber Corporation, are currently hiring. …As one might expect, there has been and continues to be plenty of dialogue and video conferencing going on. “We’re doing shared practices, we’re all talking to each other. We’re saying, ‘What are you doing to ensure your workers are safe and healthy in the workplace?’”

The unexpected consumer run on toilet paper during the COVID-19 outbreak has provided an opportunistic teaching point. Derek Nighbor, FPAC president-CEO, said panicked buying of specialty paper products delivered a “big surprise” to industry producers. …In presenting a cross-Canada snapshot, Nighbor said some sawmills in Ontario, Québec and British Columbia were taking a few weeks of downtime to see how the pandemic situation plays out. The timing of the outbreak, south of the border, doesn’t look promising for U.S. housing starts in the months ahead. …“The big question is, how long is this going to last?” said Nighbor. Pulp mill operations were running full out for the obvious reason of the surge in demand for toilet paper, paper towels and specialty products related to sanitation. …With conditions looking worse, FPAC wants Ottawa to introduce new measures to help the big forestry players maintain cash flow in a manner that would not put taxpayers on the hook.

A deadline for the Kenora Forest Products sawmill in Kenora has been extended. A proposal from banktruptcy trustees was expected last Friday, but the court says details are now due May 18. Prendiville Industries filed for bankruptcy protection before Christmas, citing cash flow issues related to border tariffs. A legal decision on those tariffs is set for August. …Despite high lumber prices at the time, the company wasn’t able to take full advantage, as the impact of American tariffs on softwood lumber could no longer be ignored. The company has about $9 million tied up in tariffs. Bankruptcy proceedings started in early December, with Prendiville listing $28.7 million owing, including $13.7 million to CIBC. Another $8.8 million is owing to federal and provincial governments and agencies.

Eric Larouche

The EACOM Timber Corporation VP of Human Resources… realizes the company is fortunate to have been designated “essential” by both Ontario and Quebec. However, that designation brings challenges. …Larouche stressed the company is working very hard to put as many safety measures as possible in place to protect its employees. These measures include limiting travel, work from home strategies and increased supplies of sanitizers. “We also hired an industrial cleaning company to disinfect all the mills twice a week,” he said. “That includes touch screens, bathrooms, locker rooms, lunch rooms, and the like. And that’s on top of all the cleaning that is being done at each site.” Larouche noted there have been no layoffs as a result of the COVID-19 virus and none are anticipated at this point. “There are some people who chose, for personal reasons, and we have to respect that, to stay home,” he said.

The Resolute Forest Products mill in Thunder Bay is part of the company’s production engine to produce pulp needed for the manufacturing of personal protective equipment for health-care workers. Workers at Resolute Forest Products are working to capacity to keep up with the production of pulp needed for the manufacturing of personal protective equipment for health-care workers. Business has been so good that Resolute has donated $25,000 to the Thunder Bay COVID-19 Community Response Fund, created by the United Way of Thunder Bay and the Thunder Bay Community Foundation. The money was made possible through a partnership with Resolute’s Thunder Bay sawmill and Ontario woodlands operations. [we respect the copyrights of the source publication – full access may require a subscription]

HALIFAX — The number of COVID-19 cases confirmed at a sawmill operated by J.D. Irving Ltd., near Truro, N.S. has risen to three. On Saturday morning, the company said one of its employees tested positive. The worker’s last shift was March 22. Irving says the worker received the proper medical care, and is self-isolating. Mary Keith, the vice-president of communications for J.D. Irving, said the company learned Wednesday two more employees had tested positive. …After word came out Wednesday that these workers had been infected, Irving decided to immediately shut the mill down for a minimum of 24 hours, and begin another round of cleaning. …The Valley, N.S., sawmill runs on shifts, and employs 140 people.

The J.D. Irving Ltd. sawmill near Truro, N.S., said it received notice on Wednesday afternoon that two more employees have tested positive for the new coronavirus, bringing the total number of employees infected to three. The mill said it will shut down temporarily. The first case at the sawmill was confirmed by the company on Saturday. “The individuals have been assessed by medical professionals and are self-isolating at home while they recover,” J.D. Irving said in a statement. According to the company, one worker was last at the sawmill on March 23 and the second worker was last on-site on March 26. …As public health continues to investigate to determine the close contacts of the two recent cases, the mill said it will immediately shut down for a minimum of 24 hours. “[We] will work with Public Health to understand when a safe reopening can be undertaken.”

There are few political leaders who compare to Donald Trump’s catastrophic record on the environment. …Ontario Premier Doug Ford has carved his own ignominious legacy of environmental devastation. …since first assuming office in 2018, Doug Ford is opening the floodgates for the logging industry’s assault on one of the world’s most critical forests for the climate and putting a black mark on forest products sourced from the province. …Now, as scientists around the world are calling for the protection of intact forests as an essential part of avoiding catastrophic climate change, Ford is working to expand logging’s footprint in the boreal. Under the guise of “modernization,” the Ford Administration has released a series of proposals to dismantle many of the remaining checks on the industry…

Rather than laying off because of the COVID-19 pandemic the EACOM sawmill in Timmins is hiring. “We are looking for production employees and maintenance employees,” says human resources vice-president Eric Larouche. …Some of the available jobs are permanent, the rest temporary. …The temporary positions are to replace workers who are staying home for reasons like holding down the fort while a spouse works in health care. …“Maybe not a face-to-face interview”, he says, in light of current conditions. “We’ll do a Skype type of interview.”

POINT TUPPER: The last major mill in the province has stopped accepting wood deliveries.  The decision comes as Port Hawkesbury Paper (PHP) deals with the declining market and now the added effects from the novel coronavirus (COVID-19) pandemic.  In a statement, the company said it is an evolving situation and they will continue to monitor and adjust operations as required.  “We are very cognizant of and regret the impact these actions will have on all those affected,” the statement reads. “This will not have an impact on deliveries of paper to our customers.”  Deliveries at this time of year are generally reduced due to soft ground conditions and spring weight restrictions throughout the industry, but as the plant prepares for their scheduled slowdown, the mill has been forced to take additional measures because of the global pandemic. 

BROMPTON, Quebec – Kruger Specialty Papers announced the temporary shutdown of its Brompton facility, effective Friday, April 3, for an indefinite period of time. The Company came to this difficult decision due to unfavorable market conditions that deteriorated very rapidly with the COVID-19 outbreak, affecting the Mill’s operations and financial performance. The production of both newsprint and specialty papers for the flexible packaging industry will be curtailed, and the facility’s biomass cogeneration plant will also be shutdown. The Brompton Mill shutdown will affect 272 employees. [END]

Correction: An earlier version of this story indicated Port Hawkesbury Paper pleaded guilty, when in fact, the company pleaded not guilty and will go to trial in January 2021. SYDNEY — A provincial court trial date has been set for a Cape Breton paper company charged with violating the Wildlife Habitat and Watercourse Protection Regulations. Port Hawkesbury Paper, located in Point Tupper, Richmond County, is charged with three violations of the regulations that were alleged to have occurred between January and March 2019. The offences occurred during the harvesting of trees at Peggy Allan Lake in Grand Mira North. The company is charged with failing to leave 10 living or partially living trees for each hectare cut; failing to leave at least one clump of no fewer than 30 trees for each eight hectares cuts; and failing to ensure clumps of trees were situated at least 20 metres from the edge of the forest stand being cut.

The EACOM Timber Corporation is proceeding with as much of its operations as possible during the COVID-19 pandemic, given they are deemed to be an essential service by provincial governments of Ontario and Quebec. New measures have been implemented, however, during this unprecedented time, as the company says the No. 1 priority is the safety of its employees. …“We produce lumber, which the U.S. border closure agreement stipulates is essential and crucial to both the Canadian and American economies,” said Communications Advisor Biliana Necheva. …While the offices are shut down, sawmills and production facilities will remain in operation,” Necheva said. “We’ve had some employees in quarantine. We’ve had some people who have decided to self-isolate for all kinds of reasons. …Our intention is to continue production as normally as possible, while also implementing safety measures.” Wood harvesting in the surrounding forests hasn’t been impacted, to this point.

One of Nova Scotia’s cases of COVID-19 has been confirmed to be an employee at the Irving Sawmill near Truro, Nova Scotia. …J.D. Irving says that the employee has received the proper medical care and is self-isolating The employee’s last shift at the sawmill was on March 22, according to J.D. Irving. When the company learned of the individual’s diagnoses on Friday evening they identified any potential exposure to other employees. All potentially infected employees have been notified by the company and advised to call 811 if they present symptoms and will not return to the sawmill until further notice, J.D. Irving said. The company says they had already implemented increased cleaning and disinfection measures before the incident. …The company says that Nova Scotia’s department of public health has informed them that operations at the sawmill can continue.

As of April 3 there will only be one large sawmill left buying wood in Nova Scotia. The secondary markets found for wood chips after Northern Pulp shut have been falling through as COVID-19 sent tumbling a series of economic dominoes. Without a market or even a destination for their wood chips this province’s sawmills are shutting the gates to their woodyards and some have already shut down production. “As of Friday night it will only be Irving,” said Andrew West, a log broker for HC Haynes of the Irving owned sawmill near Truro that is still buying wood. Elmsdale Lumber, Taylors Lumber in the Musquodoboit Valley, Williams Brothers in Barneys River, Ledwidge Lumber in Enfield and Scotsburn Lumber in Pictou County have all either closed their woodyard gates or announced their intentions to do so.

Karl Blackburn

…Karl Blackburn, Resolute Forest Products spokesperson, is also glad the government recognized the pulp and paper industry as essential, but acknowledges the need to reduce the production to minimize the spread of COVID-19. “We… have decided to close the Dolbeau-Mistassini mill on April 1st, the Baie-Comeau mill on March 28th and the machine No. 9 in Alma last night (March 24th)”, he said, adding that 450 pulp and paper workers are affected. Furthermore, three wood engineering sawmills, in Larouche, Saint-Prime and Chateau-Richer are also closed temporarily, touching another 215 employees. For the moment, all sawmill production is maintained in Ontario. …Remabec (3 sawmills, 700 employees) and Chantiers Chibougamau (2 sawmills and one paper mill in construction, 1100 employees) have also decided to shut down their sawmills to a strict minimum. Meanwhile, Kruger and Cascades announced that all their activities will be maintained. 

Nova Scotia Power’s largest customer will get another four-year discount on electricity rates. In a decision released Thursday, the Nova Scotia Utility and Review Board approved an extension of special rates for Port Hawkesbury Paper, which are 25 per cent below what the mill would pay if it was charged on the same cost-recovery basis as all other customers. The deal means the company will save $20 million per year on its electricity bill. Known as the “extra large active demand control tariff,” Port Hawkesbury Paper will pay about $61 per megawatt hour, well below the full cost of generating the electricity. Regulators were persuaded to approve the rates because Nova Scotia Power gets control over electricity supplied to the mill, with the right to direct the company to increase or reduce daily consumption.

HALIFAX, Nova Scotia — The Supreme Court of Canada has dismissed the province of Nova Scotia’s bid to appeal whether it must consult with a Mi’kmaq community on how public money is provided to the Northern Pulp mill’s effluent treatment plant. The court typically doesn’t provide reasons, and in a news release issued today says only it has dismissed the appeal with costs. …Before launching the appeal of the Nova Scotia court’s ruling, Premier Stephen McNeil told reporters that while his government takes the duty to consult seriously, it didn’t believe the concept applied in this case. …McNeil’s Liberal government made the commitment to Pictou Landing in 2015, after five decades of the wastewater flowing into the estuary on the edge of the reserve.

Domtar in Dryden continues to operate during the outbreak, since it’s been declared an essential business. “We have been engaged in a very focused way in implementing our pandemic response plan,” said Bonny Skene, the manager for regional public affairs.   Pulp from the mill is — actually — helping to provide the ingredients for products in demand, such as toilet paper. “I wouldn’t say it’s business as usual. The mill continues to run as it normally does, but the way we’re doing that is we’re trying to make sure — for example — we’re taking extra precautions to sanitize work spaces and break rooms. We’re modifying our work practices,” she added.

More Northern Ontario enterprises have been moved to produce hand sanitizer as a way to help prevent the spread of the novel coronavirus. In Sault Ste. Marie, staff in the insect protection and quarantine laboratories at the Great Lakes Forestry Centre have produced a batch of hand sanitizer for local health authorities, including the Sault Area Hospital and the Group Health Centre. The group started its work on March 21, at first producing 160 litres, 100 of which have been delivered to the Group Health Centre. To date, the lab has made 350 litres to provide free of charge to the two health centres, which have been identified “at high risk of exposure to COVID-19,” according to a news release from the centre.

WHITE RIVER, Ontario — COVID-19 is softening the demand for lumber and putting pressure on lumber prices. White River Forest Products will shut down operations for two weeks starting March 30. White River Mayor Angelo Bazzoni says he’s not surprised by the shutdown. …White River Forest Products provides jobs for nearly 200 people. Bazzoni said the mill is scheduled to resume production on April 13. Jamie Lim, president of the Ontario Forest Industries Association, said COVID-19 is presenting new economic challenges. “Lumber demand and pricing across North America is obviously under new and extreme pressures. …”We were all very grateful when the government declared this week that the forest sector is an essential industry. That was huge,” Lim said. The industry is lobbying the federal government as well.

Parks operated by J.D. Irving have been closed to the public indefinitely, joining the list of public places in New Brunswick shuttered to limit the spread of COVID-19. The privately-owned company operates a number of parks in the Saint John area, including The Irving Nature Park, The Children’s Forest, Sheldon’s Point and Wolastoq Park. All of them will now be closed. …In Bouctouche, La Dune de Bouctouche and the Arboretum Trails will also be closed. “In these unprecedented times, we as a community, must come together to ensure the health and safety of everyone is a top priority.”

TORONTO — Norbord announced that effective March 30, it will commence reducing production across its portfolio of North American oriented strand board mills in response to the demand impact of the COVID-19 pandemic. …This adjusted operating configuration will initially result in a 25% reduction to Norbord’s currently operating North American mill capacity. …The Company does not intend to provide further operational updates unless there is a significant change in this curtailment strategy. Norbord’s European business is prepared to take similar action and will adjust mill operating schedules as needed to match production with demand. In addition, the Company is deferring non-critical capital projects and further reducing its 2020 capital expenditures budget by 25%, from US $100 million to US $75 million, to preserve cash and balance sheet flexibility.

CORNER BROOK, Newfoundland and Labrador — Corner Brook Pulp and Paper will continue to operate during the COVID-19 pandemic. The Corner Brook producer of newsprint is one of three operations that fall under parent company Kruger’s newsprint, specialty and publication papers in Canada that will remain operational. The other two are located in Quebec – Brompton Mill in Sherbrooke and Kruger Wayagamack in Trois Rivières. …Kruger said it will be maintaining all of its operations that have been declared essential by Canadian and U.S. authorities or COVID-19 government guidelines. That includes the manufacture of tissue products, food packaging and containerboard, newsprint, publication and specialty papers, as well as recycling services, the bottling of beverages and the production of electricity.

As of Wednesday, only businesses deemed by the province to be “essential” are allowed to keep running in the face of COVID-19. That includes some of the biggest employers in the northeast: mines, sawmills and steel plants are all staying open. …Eacom is trying to find ways to keep workers two metres apart at its sawmills in Timmins, Gogama, Elk Lake and Nairn Centre. “Certainly our employees are concerned, which is understandable, as this is a period of high stress for all Canadians and that’s why we have to work very diligently,” says director of public affairs Christine Leduc.  Domtar says it’s paper mill in Espanola is essential because it produces personal hygiene products, as well as the pulp used for toilet paper and other tissue products.

KINGSEY FALLS, Quebec — Cascades is adhering to the guidelines provided by government officials in Canada and the US. Given the essential nature of our packaging and hygiene products, all of our facilities continue to operate. …The Company is committed to ensuring the continuity of our operations and supporting our customers, partners and the communities in which the Company operates. ..In the past few days several US states have taken steps to restrict the activities of businesses and other organizations. In each of these cases, all of Cascades’ activities have been recognized as “essential” or “life sustaining”. …Cascades believes that it has an economic and social responsibility to maintain our operations. 

ONTARIO — Various forms of construction, mining and forestry are included in Ontario’s list of essential services, as the province moves to close businesses in an effort to stop the spread of COVID-19. Premier Doug Ford announce the provincial government will close non-essential businesses to flatten the curve. …Businesses will be required to close as of 11:59 p.m. Tuesday night. …Heavy equipment repair and rental have been deemed an essential services, as well as road construction and maintenance. …For construction sites, various project types will be able to continue to operate as essential services, including: Construction projects and services required to ensure safe and reliable operations of critical provincial infrastructure. …Various forms of mining were also deemed as essential services, including… Businesses that ensure global continuity of supply of forestry products (e.g. lumber, pulp, paper, wood fuel, etc.).

Nova Scotia’s last major mill will curtail buying wood in April and scale back planned deliveries in May as it deals with ongoing market decline, compounded by the effects of the COVID-19 pandemic. The move is the latest blow to a forestry industry struggling to maintain a toehold following the loss of its major player. …The move will have an immediate effect on sawmills in the province, most notably Ledwidge Lumber and Scotsburn Lumber, who had been sending wood and chips to Port Hawkesbury Paper since the closure of Northern Pulp at the end of January. …The provincial government has been trying to help the industry transition to a future beyond Northern Pulp. However, much of that work entails consultation and meetings, many of which will likely have to change as COVID-19 turns almost everything upside down.