Category Archives: Business & Politics

Business & Politics

Teamsters Canada Rail Conference members reauthorize strikes against CN, CPKC

FreightWaves
July 1, 2024
Category: Business & Politics
Region: Canada

LAVAL, Quebec — Members of the Teamsters Canada Rail Conference have voted to reauthorize strikes at CPKC and CN, the union announced Saturday. Overall, 89.5% of union members participated in the vote, with 98.6% voting to reauthorize the strike, the union said. …The union previously authorized strikes at both railroads on May 1, but those authorizations are only good for 60 days, and the potential May 22 strikes have been placed on hold while the Canada Industrial Relations Board rules on a government request to determine if any shipments must continue in the event of a work stoppage. That ruling is still pending. “CN and CPKC are trying to force changes to our collective agreements that would move the clock back on working conditions and rail safety,” TCRC President Paul Boucher said. …The railroads have rejected the unions’ claim that their offers jeopardize safety, saying their latest offers “fully comply with new regulatory requirements for rest.”

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Port Alberni sawmill previously fined for injury to worker

By Laura Brougham
Chek News
July 7, 2024
Category: Business & Politics
Region: Canada, Canada West

San Group’s Port Alberni sawmill has previously been inspected by WorkSafeBC 11 times, with one resulting in a fine of nearly $80,000. WorkSafeBC would not confirm if it is involved in the current investigation into the Port Alberni company’s use of temporary foreign workers. However, it did say it had conducted 11 inspections between last year and this year, which resulted in 27 corrective orders and one fine. The $78,721.53 fine came in October after an employee sustained serious injuries, resulting in multiple fingers needing to be amputated because safety guards were missing and other equipment was not properly locked out. San Group says it is appealing the fine, saying the injuries were the result of the employee not properly following the company’s safety procedures.

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Company plans to sue City of Port Alberni following allegations surrounding migrant workers

By Kendall Hanson
Chek News
July 6, 2024
Category: Business & Politics
Region: Canada, Canada West

The company facing allegations of inhumane living conditions of its temporary foreign workers in Port Alberni is planning to sue the city. The San Group sent its letter of intention Friday afternoon. The San Group says its reputation has been damaged by the actions of the city, including its mayor and chief administrative officer. The company has released surveillance videos of a surprise inspection of one of its Port Alberni properties late Thursday night by the fire department, escorted by police. The company call it unauthorized, illegal and it’s angry it happened without one of it’s staff present. …The company has provided a fire order issued by the Port Alberni Fire Department in September 2022.  The letter orders that no structures at the property “be utilized as sleeping quarters for any person effective immediately.”

Additional coverage: Port Alberni mill administration believes third party involved with migrant workers before their arrival  

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Port Alberni’s San Group denies allegations of worker mistreatment

By Elena Rardon
Alberni Valley News
July 5, 2024
Category: Business & Politics
Region: Canada, Canada West

Port Alberni’s San Group is denying any allegations of worker mistreatment after a group of Vietnamese temporary foreign workers was discovered to be living in a trailer on their Hector Road property. …While San Group’s vice president of business development Bob Bortolin agreed that some temporary foreign workers had been living on the property, he says that San Group didn’t realize how many were on the property until their utility bills started going up and a landlord was sent out to perform an inspection. The trailer, which has five bedrooms, was meant to accommodate a maximum of 10 people. But there were around 16 workers living there, said Bortolin. …He said the property had electricity and running water, although the water was not suitable for drinking and San Group provided water bottles. …Bortolin said … says no complaints were ever raised about the living conditions, but acknowledges that San Group should have been checking in more frequently.

Additional coverage in Chek News, by Skye Ryan: New details emerge in case of alleged human trafficking in Port Alberni

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Port Alberni Mayor ‘disgusted’ by workers treatment

By David Wiwchar
Nanaimo News Now
July 4, 2024
Category: Business & Politics
Region: Canada, Canada West

Port Alberni Mayor Sharie Minions is speaking out after allegations were made against the San Group yesterday. The company is accused of mistreating foreign workers after 16 men from Vietnam were reported living in a small trailer on mill property with no running water. Minions said while San Group is a large part of the local economy, the community won’t tolerate the mistreatment of workers. …Minions said this is not the first time the city has become involved with San Group foreign workers after a group of men were discovered living in the company’s lunchroom two years ago. “The city has received complaints in the past which we have forwarded to RCMP and WorkSafe and have been investigated, so this is not the first time that this has been a concern from our perspective,” she said. “I’m glad that people were willing to speak up.”

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Port Alberni company denies ‘human trafficking’ allegations after Vietnamese workers leave

By Adam Chan
Chek TV News
July 3, 2024
Category: Business & Politics
Region: Canada, Canada West

PORT ALBERNI, BC — The City of Port Alberni says the provincial and federal governments are looking into a complaint about the mistreatment of temporary foreign workers. …David Wichar with 93.3 The Peak was told by the workers at San Group that they paid $30,000 to come to Canada to work at the San Mill in Port Alberni. They were also told they’d be paid $30 an hour and receive accommodations. The recent complaints revolve around the living conditions of roughly 16 men in a single trailer parked on the San Group property. …Bob Bortolin, a senior compliance officer with the San Group, says the allegations are unfounded and that the living conditions were a product of the men staying there, and not the company’s responsibility. …Bortolin says …the workers were promised a pay range between $25 an hour to $45 an hour depending on their skill set – which they have been receiving.

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What Are We Going to Do About It?

By Linda Coady, President & CEO, Council of Forest Industries
BC Truck Loggers Association
July 2, 2024
Category: Business & Politics
Region: Canada, Canada West

Linda Coady

A dramatic drop in harvest levels is putting the benefits created by BC’s forest sector and its future at risk. The 2024 BC Council of Forest Industries (COFI) Convention put some solutions on the table.  …The first hour of the 2024 COFI Convention identified the priority of unlocking fibre supply.  The next day and a half focused on how to do that. …Five ideas were put forward for inclusion in a strategy for predictable fibre supply in BC:

  1. Remedy current permit development processes to ensure that an environmentally sustainable and economically viable harvest can be consistently achieved.
  2. Secure agreements with First Nations that advance progress on critical issues.
  3. Expedite new regional tables for forest landscape planning.
  4. Support more innovative forest management.
  5. Develop a multi-year roadmap and economic strategy for the BC forest sector.

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85 years of business in the West Kootenays and still going strong — Kalesnikoff mass timber products and lumber

By Ari Lord
The Nelson Daily
July 3, 2024
Category: Business & Politics
Region: Canada, Canada West

Kalesnikoff mass timber products and lumber recently celebrated 85 years of business in the West Kootenays. The company, started in the 1930s by three immigrant Russian Doukhobor brothers, for years has tried its hand at many timber-related ventures and now does milling and mass timber construction. Ken Kalesnikoff, President and CEO, says the company’s success is due to its stellar employees, constantly adapting, and getting into value-added wood products. “One of the very unique things that we have going is the generations,” he said of the four-generation business. …By 1940, the three brothers had built a sawmill. After several relocations within the Castlegar area, the brothers established their operation in Thrums in 1972, where the sawmill stands today. It has truly been a family business for all 85 years. Kalesnikoff’s father, Pete Jr., went to work in the mill at age 14, and was President and CEO of the company until 2005.

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BC’s Minister of Forests, Bruce Ralston, not seeking re-election

By Tom Zytaruk
The Surrey Now-Leader
July 2, 2024
Category: Business & Politics
Region: Canada, Canada West

Bruce Ralston

Bruce Ralston, the five-term NDP MLA for Surrey-Whalley has decided not to run for a sixth term in the October provincial general election, ending a storied career as MLA that began when he defeated incumbent Democratic Reform MLA Elayne Brenzinger for the seat in 2005. …”The session is very busy, I had a little bit of a chance to reflect and just to think about the prospect of going forward for another four years,” Ralson said. “I’ve been at it almost 20 years so I decided that’s it’s time for the next, time to do something else, time for the next phase of my life.” A criminal defence lawyer by trade, Ralston, now 71, also ran his own law firm in Surrey. …His career as MLA saw him serve as president of the BC NDP from 1996 to 2001, and replace John Horgan as NDP House Leader in 2014 so Horgan could run for the party leadership.

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3 First Nations, Manitoba government sign deal on 20-year forestry plan

By Darren Bernhardt
CBC News
June 28, 2024
Category: Business & Politics
Region: Canada, Canada West

Three Manitoba First Nations and the province of Manitoba have struck a deal to create a long-term forestry plan in the Swan Valley region, an agreement being called an act of economic reconciliation. The memorandum of understanding, announced Friday, calls for the provincial government, local First Nations and Louisiana-Pacific Canada to work together to create a 20-year forest management plan to protect treaty rights and jobs. It aims to put an end to a long and legally contentious matter in the Duck Mountains, Porcupine Provincial Forest and Kettle Hills area, between Lake Winnipegosis and the Saskatchewan border. “We fought hard for this agreement,” said Chief Derek Nepinak of Minegoziibe Anishinabe (formerly Pine Creek First Nation), one of three First Nations chiefs to sign the agreement. …Premier Wab Kinew said the agreement marks a significant moment and sets a new standard for the relationship between the province and First Nations.

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Fast-growing Surrey grapples with business issues, increased taxes

By Glen Korstrom
Business in Vancouver
June 26, 2024
Category: Business & Politics
Region: Canada, Canada West

Clarity that the Surrey Police Service will oversee policing in B.C.’s second-largest city by November ended six years of uncertainty. …Surrey has been courting manufacturing and distribution businesses by expanding its base of industrial-zoned land, particularly in Campbell Heights. …Industrial landowners in Surrey have seen BC Assessment increase estimated values for their properties, and the city has increased its property tax rate. S&R Sawmills principal and president Jeff Dahl said that his 60-year-old family business that employs about 300 people has seen soaring tax increases in recent years. …Add higher property tax rates and Dahl’s 2024 property tax bill was $652,482.82. That is 276.7% more in property taxes than in 2019. At the same time, Dahl’s business has struggled in the past five years amid ongoing challenges faced by the BC forestry sector. He said a tax break would help his business and nearby ventures, such as Teal Jones, which is operating under creditor protection.

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NDP has turned its back on BC’s forestry sector, says Kevin Falcon

By Cheyanna Lorraine
Kelowna Now
June 25, 2024
Category: Business & Politics
Region: Canada, Canada West

“This is an urban government driven by an urban premier with an urban radical agenda.” That’s what the leader of the official opposition, Kevin Falcon, had to say about the NDP’s forestry policies and regulations. Falcon made the comment following the announcement of a temporary mill closure in Merritt. In a separate statement, the Ministry of Forests said the temporary halt on operations at Aspen Planers was caused by the “many challenges” facing the forestry industry in North America, including low market prices for lumber and high interest rates. Falcon said it wasn’t just the forestry sector that was suffering, it was the “entire natural resource sector,” and the BC United would give those sectors “certainty.” …He said BC’s government needs to ensure there is a “thriving natural resource sector” while having a sector in the Lower Mainland that is “firing on all cylinders.”

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Paper Excellence Canada publishes fourth sustainability report

Paper Excellence Canada
June 21, 2024
Category: Business & Politics
Region: Canada, Canada West

RICHMOND, BC—Paper Excellence Canada published its fourth sustainability report: New Horizons: Paper Excellence Canada to Become Part of a Bigger Whole. This is the final sustainability report the company will publish as Paper Excellence Canada, which is integrating with Domtar and Resolute Forest Products to create a single, larger and more diversified entity. The report provides an annual overview of the company’s 2023 sustainability performance – primarily comprised of five operating mills in British Columbia and Saskatchewan. Throughout the report, Paper Excellence Canada identifies its achievements and opportunities to do better. …In addition to the hard data, seven “Practices and Perspectives” videos are included in the report, highlighting employee stories and perspectives. These include topics like capturing biogenic carbon emissions, learning how to retain global talent, and rising to the challenge when wildfire closed the road to their mill.

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BC says it is ‘determined to support’ forestry workers after Merritt mill closure

By Cheyanna Lorraine
Kelowna Now
June 24, 2024
Category: Business & Politics
Region: Canada, Canada West

MERRITT, BC — Earlier this month, a mill in Merritt announced that it would be temporarily pausing operations. …According to the statement, staff from the Ministry of Forests have met monthly with Aspen Planers for almost a year to address concerns and will continue to do so.”…The City of Merritt on Friday said the city said it was hopeful that the government could find a way forward and a way to resolve “issues in this vital forestry sector.” …According to the Ministry of Forests, the closure was caused by the “many challenges” facing the forestry industry in North America… and it would be increasing access to fibre. …The province said it has taken several steps to speed up salvage logging permits following wildfires, fund local forestry manufacturing projects and make stumpage more responsive to market price.

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Registration Open: GLOBAL WOOD SUMMIT 2024 Vancouver BC

By Russ Taylor
Global Wood Summit
June 25, 2024
Category: Business & Politics
Region: Canada, Canada West

Conference registration is now open on the GLOBAL WOOD SUMMIT conference website! The lowest conference price of US$995 is available until July 31. Discounted hotel reservations at the Sutton Place Conference Hotel can also be made on the conference website. The GLOBAL WOOD SUMMIT features a wide range of industry experts, producers, exporters, importers and selected specialists focused on national and global trade. Our event is a great deal! If you look at the price tag of some other conferences you will see that we have the “real deal” in terms of speakers, topics and value. Our objective is to provide quality speakers to attract more delegates to enhance networking and business opportunities! Let’s face it – current market conditions are not great, so listening to hand-picked global speakers, suppliers and customers in and outside your own markets to hear what is going on around the world can be of strategic value to your business in 2025.

See full press release on Russ Taylor Global

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Irving showcases its pulp mill expansion plans to the public

By Andrew Bates
The Telegraph Journal
July 2, 2024
Category: Business & Politics
Region: Canada, Canada East

NEW BRUNSWICK — Irving Pulp and Paper, a subsidiary of J.D. Irving, offered one of its first chances for the public to learn about the proposed $1.1B expansion Thursday at the Lancaster legion branch. …The four- to six-year project, announced in May, involves the construction of a new recovery boiler said to increase production by approximately 66 per cent, installation of a new steam turbine to generate green energy and construction of a new lime kiln. This will allow the mill to jump from 1,000 air dry metric tonnes of pulp to 1,800 daily, according to its environmental impact assessment, while jumping from 30 MW of power generation to 140 MW, which it intends to sell on to NB Power. According to the environmental impact assessment, this means overall emissions, including from power generation, drop, while emissions from production will increase.

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Athena Institute co-founder and LCA advocate Wayne Trusty passes away

By Jennifer O’Conner
Athena Sustainable Materials Institute
July 2, 2024
Category: Business & Politics
Region: Canada, Canada East

Wayne Trusty

The Athena Institute is sad to announce that Wayne Trusty passed away on June 21, 2024 at the age of 82. Wayne had an interesting career that eventually led him to an advisory role on “the Athena project” in the early 1990s. This research effort looking into the environmental footprint of building materials became the Athena Sustainable Materials Institute, a non-profit co-founded and headed by Wayne. From the 1997 launch of the Athena Institute to his retirement as President in 2011, Wayne was a tireless advocate for life cycle assessment (LCA). He can be credited for putting LCA on the map in the world of sustainable design. …Wayne’s vision, leadership, support, and commitment left an everlasting impact. He was a shining light in the world of sustainability. Truly one of a kind, he inspired so many people and made the world a better place through his tireless work. And he always had a good story to tell. He will be missed. Condolence messages can be left here. A celebration of life on Sunday July 14, 2024 in Merrickville Ontario.

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GreenFirst Announces Plan to Spin-Out Kap Corporation

By GreenFirst Forest Products Inc.
Businesswire
July 2, 2024
Category: Business & Politics
Region: Canada, Canada East

TORONTO — GreenFirst Forest Products announced that it intends to complete a spin-out transaction of Kap Corporation, whereby the shares of Kap will be held directly by the shareholders of the Company. The Spin-out is expected to be completed in Q4 2024. …The Spin-out of Kap is part of the natural progression of the decentralization and deconsolidation of the newsprint mill that was originally disclosed by GreenFirst in the Fall of 2023. The Spin-out will enable GreenFirst to focus on its core business of being a pure-play lumber producer, offering shareholders a stake in any future upside from the development of Kap. …Kap Paper is the only chip consuming facility in Northeastern Ontario and the Spin-out provides Kap Paper with the potential to pursue new opportunities to support the green economy as part of a broader Northern Ontario forest strategy.

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Irving plans $1.1B upgrade to west side pulp mill

By Hadeel Ibrahim
CBC News
June 28, 2024
Category: Business & Politics
Region: Canada, Canada East

Mark Mosher

Irving Pulp and Paper Ltd. is looking for approval of a $1.1 billion upgrade to its west side pulp mill. The project includes a new 20-storey boiler building to be constructed within four years. The goal is to upgrade the current 1970s boiler to increase pulp output by 65 per cent and generate enough energy to operate without buying off-plant power, said Mark Mosher, vice-president of Irving Pulp and Paper. Mosher said the mill has been getting gradual upgrades for years, including a 1990s upgrade to reduce odour and emissions. He said this new equipment is expected to reduce odour and emissions for each tonne produced. …The increased output would mean two trains out of the pulp mill a day, instead of one, and more incoming wood chips. …The company has filed its environmental impact assessment report and is awaiting approval.

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Expansion of Element5 will double its mass timber production in 2025

By Joe Konecny
The Hamilton Spectator
June 26, 2024
Category: Business & Politics
Region: Canada, Canada East

ST. THOMAS, Ontario — Expansion of the Element5 manufacturing plant in St. Thomas, has firmly established the nine-year-old company as one of North America’s leaders in the design, fabrication and assembly of contemporary mass timber structures. Founded in 2015 in Ripon, Quebec, Element5 built a 130,000 square foot St. Thomas facility in 2020 on 40 acres of land in the city’s north end. It generates about 50,000 cubic meters of cross-laminated timber (CLT) a year. Work on the St. Thomas expansion started in 2023 and increases the Element5 footprint to over 350,000 square feet, set to produce another 50,000 cubic meters of glulam a year starting in 2025. …In February, The Hasslacher Group, of Austria, made a strategic investment in Element5 to fuel growth in the North American market and support the St. Thomas expansion. Element5 now calls St. Thomas its headquarters. Element5 recorded 2023 sales of about $30 million and the company is forecasting $40 million in 2024, and $100 million in 2030.

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Ontario Supporting Cascades’ Laid Off Manufacturing Workers in Belleville and Trenton

By Ontario Ministry of Labour, Immigration, Training and Skills Development
The Government of Ontario
June 25, 2024
Category: Business & Politics
Region: Canada, Canada East

BELLEVILLE — The Ontario government is investing $445,252 in a new action centre to help the 180 workers impacted by the closure of Cascades’ manufacturing plants in Trenton and Belleville connect with services and training they need to get back to work quickly. David Piccini, Minister of Labour, Immigration, Training and Skills Development, said “Our government is investing in the Cascades Action Centre to ensure that these workers have access to resources and opportunities to land better jobs.” Run by Unifor, the Cascades Action Centre will operate until April 2025 and support laid-off workers represented by Unifor Local 1470 and the Independent Paperworkers of Canada Local 7. The action centre will host workshops and seminars, provide peer-to-peer support and job search assistance, teach financial management and computer skills.

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Subsidies to New Brunswick pulp and paper mills increasing to soften electricity rate hikes

By Robert Jones
CBC News
June 26, 2024
Category: Business & Politics
Region: Canada, Canada East

New Brunswick Power’s application for a pair of steep rate hikes is forcing it to pay higher subsidies to pulp and paper mills this year and next year to help the plants cope with the increases. But the utility says it is not allowed to provide similar relief to any other customers who might be in need, including low-income households. …But restrictions on subsidising power costs do not apply in one case. In evidence presented at the hearing, N.B. Power has outlined plans to spend $26.3 million over the next two years to help pulp and paper mills with their electricity costs. It is a 36 per cent increase over the previous two years. The subsidy, called the Large Industrial Renewable Energy Purchase Program, involves N.B. Power buying renewable electricity generated by the mills at high prices and reselling it back at low prices.

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New Brunswick Power executives deny exaggerating nuclear troubles to justify large rate hike

By Robert Jones
CBC News
June 24, 2024
Category: Business & Politics
Region: Canada, Canada East

New Brunswick Power executives faced pointed questions early at a New Brunswick Energy and Utilities Board hearing that is reviewing plans to raise electricity rates 20 per cent over the next two years, nearly half of which is already being collected from customers. N.B. Power president Lori Clark and CFO Darren Murphy both denied a suggestion from the forestry company J.D. Irving that the utility is exaggerating how poor performance at the Point Lepreau nuclear generating station is likely to be to justify raising rates more than necessary. “The performance metrics that N.B. Power is forecasting for Point Lepreau are not in fact improvements. It’s a forecast of worse performance,” said Glenn Zacher representing JDI. …J.D. Irving is N.B. Power’s largest private-sector customer. It is fighting a request by the utility to raise rates an average of 9.25 per cent this year and next year, including 9.8% on residential and large industrial customers. 

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Kruger and Unifor reach agreement, put an end to strike that began May 30

Unifor Canada
June 19, 2024
Category: Business & Politics
Region: Canada, Canada East

TROIS-RIVIERES, Quebec — Unifor announced the conclusion of a historic agreement in principle between the employees at the Kruger plant in Trois-Rivières and the company’s management, putting an end to the strike that began on May 30, 2024. Union members overwhelmingly approved the agreement at ratification meetings held throughout the week. This new four-year collective agreement marks a major milestone for employees, with unprecedented wage increases and substantial improvements to benefits, vacation, pension and the introduction of an overtime bank for production employees. …From May 1, 2024, employees will benefit from an 8% salary adjustment and an additional 3% increase. In 2025, wages will be further increased by $1.30 per hour. For 2026 and 2027, employees will receive a guaranteed increase of 2.25% or more. …Employees will return to work at 11 p.m. Wednesday evening, allowing the plant to resume normal operations.

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Fonthill Lumber celebrates four-fold expansion to new Welland location with grand opening

By Bernd Franke
The Welland Tribune
June 26, 2024
Category: Business & Politics
Region: Canada, Canada East

Jeff Carruthers

WELLAND, Ontario — Fonthill Lumber, a building concern since it was established in 1951, has also been a growing concern for much of the past three years. Completion of that ambitious and massive growth, from a 2,320-square-metre facility on Highway 20 in Fonthill to a sprawling, four-building complex about four times larger on Woodlawn Road in Welland, will be celebrated with a grand opening on Thursday. That’s when Mayor Frank Campion, headlining a guest list of dignitaries, builders and customers from both sides of the Canada-US border, is scheduled. …“Right now, we have the capability of having seven lines to make seven different sets of trusses, plus a four-truss table as well,” manager Jeff Carruthers said. Besides a manufacturing facility for trusses and an administration building that includes a retail out, the 16.2-hectare site also has what the manager calls the “sawmill.”

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Catastrophic explosion could have happened at Kruger’s Corner Brook mill, expert says

By Abby Cole
CBC News
June 24, 2024
Category: Business & Politics
Region: Canada, Canada East

NEWFOUNDLAND — The Corner Brook Pulp and Paper mill’s failure to maintain its boiler’s pressure safety system could have resulted in a disaster, says a boiler expert. In April, operations ceased at the mill for a couple of weeks after the provincial government found that Corner Brook Pulp and Paper had failed to comply with safety regulations. In May, documents obtained by CBC revealed that the company, a division of Montreal-based Kruger, had neglected to inspect the facility’s boiler system’s pressure relief devices. Seventy-eight devices had not been serviced in over 30 years. “It can be catastrophic,” said Desmond Saldanha of the Canadian Boiler Society, a group of energy and environmentally concerned companies in the boiler industry. …The documents obtained by CBC News found that the Corner Brook paper mill had significant code violations.

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Billionaire businessman James K. Irving dead at 96

By Sam Farley
CBC News
June 21, 2024
Category: Business & Politics
Region: Canada, Canada East

James K. Irving

The billionaire businessman James K. Irving, chairman of J.D. Irving Ltd., has died at the age of 96, according to a news release from the company Friday evening. J.K. Irving died peacefully Friday in Saint John, N.B., the release said. He was the son of Irving patriarch K.C. Irving, who died in 1992. K.C. was an industrialist who turned a single gas station and sawmill into a family-controlled business conglomerate, making him and his three sons among Canada’s wealthiest businessmen. …J.K. Irving’s net worth at the time of his death was $5.5 billion, according to Forbes. The Forbes website says the company has planted over a billion trees since 1957, and Irving Woodlands, a division of the company, is the sixth-largest landowner in the United States. The forestry and paper operations overseen by J.D. Irving are New Brunswick’s largest private-sector employers.

Additional coverage in CTV News: Tributes remember J.K. Irving for his business, community contributions

Bloomberg in the Financial Post, by Rebecca Penty and Thomas Seal: James K. Irving, Canadian Forestry Billionaire, Dies at 96

Company press release: Irving family announces the passing of James K. Irving

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US Diaper Makers Warn European Union of Shortages Under Law to Save Forests

By John Ainger and Agnieszka de Sousa
BNN Bloomberg
July 9, 2024
Category: Business & Politics
Region: United States, International

US paper makers are warning the EU that a new law requiring them to trace timber to its origins risks disrupting $3.5 billion of trade and raising prices for diapers, sanitary pads and other hygiene products. It will be impossible to comply with the pending regulation because pulp supply chains are too diffuse to track all trees, and there’s often a two-year lag between the time they’re cut down and when they’re turned into fiber. The US industry is a major exporter of “fluff pulp,” an absorbent material used to make personal products. American suppliers meet about 60% of the EU’s needs, so any interruption would reverberate throughout the 27-nation bloc. “The EUDR as is currently written will raise the costs significantly for US producers, and it will translate into inflationary pressures in the EU,” said Mark Pitts, at AF&PA. There have been some repercussions from the law even before it takes effect, with companies having supply agreements derailed, Pitts said. [to access the full story a Bloomberg subscription is required]

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Suzano terminates talks to buy International Paper

By Andre Romani
Reuters
June 27, 2024
Category: Business & Politics
Region: United States, International

SAO PAULO – Brazilian pulpmaker Suzano said on Wednesday it has terminated talks to buy International Paper (IP), adding the U.S.-based firm did not engage with the highest price it was willing to pay. Suzano, the world’s largest pulp manufacturer, said last month it was interested in assets owned by IP in an all-cash acquisition worth $15 billion. In Wednesday’s filing, Suzano said “it has reached what it believes to be the maximum price for the transaction to generate value” for itself, “without engagement from the other party.” “Therefore, Suzano will not pursue a transaction involving the acquisition of IP,” Suzano said. …A deal between the companies would be conditioned on IP abandoning its recently announced agreement to acquire British packaging firm DS Smith for $7.2 billion. Shares from Suzano are down 14.6% since the day before news of the talks broke until Wednesday’s closing, while IP shares are up 26.2% in the same period.

Related in the WSJ: IP Stock Slides After Suzano Abandons Bid Talks – IP shares fell 9% in early trading. Suzano’s rose nearly 14%.

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Smurfit Kappa looks set for paper success with US listing on the S&P 500 index

By Andrew Whiffin
The Financial Times
June 26, 2024
Category: Business & Politics
Region: United States, International

UK companies shifting their listing to the US markets hope for a share price bump and ultimately a higher valuation. But when boxmaker Smurfit Kappa announced a tie-up with US peer WestRock last September, and a move of its main listing, its share price crumpled. Much has changed since, including more rumblings about departures from London and a flurry of sector consolidation sparked by the deal. When the new Smurfit-WestRock arrives stateside next month, bolstered by its inclusion in the S&P 500 index, the deal’s logic should unpack nicely. Whereas the pandemic meant booming demand for packaging, 2023 was a bust as customers ran down existing inventories. Against that backdrop, the deal was seen as defensive and a sign the market would deteriorate. Instead, things have picked up; the timing now looks favourable. After all, US rival International Paper came up with its own cardboard cut-out version offering to buy the UK’s DS Smith. 

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International Paper and DS Smith merger continues to progress

International Paper
PRNewswire
June 25, 2024
Category: Business & Politics
Region: United States, International

MEMPHIS, Tennessee — The boards of International Paper and DS Smith announced the expiration of the waiting period under the Hart-Scott-Rodino Act for the proposed combination of DS Smith with International Paper. This is an important step in the consummation of the proposed combination as the expiration removes the HSR Act’s bar to closing. Completion of the Combination remains subject to the satisfaction or waiver of the remaining Conditions, including regulatory clearance being received from the European Commission and the sanctioning of the Scheme by the Court. International Paper and DS Smith still expect the Scheme to become effective in the fourth quarter of 2024.

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Clearwater Paper fined $350K for unreported chlorine releases at Lewiston mill

By Eric Barker
The Lewiston Tribune
July 9, 2024
Category: Business & Politics
Region: United States, US West

IDAHO — The Environmental Protection Agency fined Clearwater Paper more than $350,000 for failing to disclose releases of toxic chlorine from its pulp and paper mill at Lewiston to regulators, emergency responders or the public. According to a news release from the agency, hundreds of pounds of the toxic gas classified as an extremely hazardous substance were released from the mill in 2019, 2020 and 2021. Some of the releases prompted evacuations at the mill and employees sought medical treatment after exposure to the gas. “Communities and first responders near facilities using deadly chemicals have a need and a legal right to know when releases occur,” said EPA Region 10 Enforcement and Compliance Assurance Director Ed Kowalski. “These are not simple paperwork issues; the safety of workers, first responders, and residents rests on a company’s compliance with these requirements.”

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Montana gets federal grant to retrain laid off lumber workers

By Blair Miller
The Daily Montanan
July 8, 2024
Category: Business & Politics
Region: United States, US West

A grant from the U.S. Department of Labor is providing $2 million to the State of Montana to provide workforce retraining and other services to lumber workers losing their jobs because of the closures of two lumber companies in western Montana. The U.S. Department of Labor provided the Montana Department of Labor and Industry with the first disbursement of $800,000 on Monday, the governor’s office said, to help workers affected by the pending closures of Pyramid Mountain Lumber, the largest employer in Seeley Lake, and Roseburg Forest Products in Missoula. …The money helps dislocated workers and others by utilizing local organizations to provide job training, career services, and transitional help so workers can find new jobs. Counties that are eligible to access money from the grant include Missoula, Flathead, Lake, Lincoln, Mineral, Powell and Sanders. The Blackfeet and Flathead reservations can also utilize the funds.

US Dept of Labor: US Awards $800k For Workers Displaced by Lumber Mill Closures

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Pyramid Lumber in Seeley Lake runs last log through sawmill Tuesday afternoon

By Kai Williams
Montana Right Now
July 2, 2024
Category: Business & Politics
Region: United States, US West

SEELEY LAKE, Montana – Crews pushed the last log of Pyramid Lumber through the sawmill Tuesday afternoon as the company winds down operations. Rising industry costs and a lack of employee housing contributed to the closing of the mill, Wendy Dalrymple, controller at Pyramid Mountain Lumber said in a press release. According to general manager Todd Johnson, the last unit of finished lumber through the planer department will be in early August, with the last load of lumber shipped out of Seeley Lake in late September. The company has been family-owned and operated since 1949, and for a little while longer, is the oldest surviving lumber mill of its kind in Montana. [END]

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Stimson Lumber Invests $50 Million into New, High-Speed Sawline

Stimson Lumber Company
June 26, 2024
Category: Business & Politics
Region: United States, US West

GASTON, Oregon – Andrew Miller, the CEO of Stimson Lumber, announced that the company will invest $50 million into a new, highspeed sawmill line at its Forest Grove, Oregon facility. The investment at the 95-year-old sawmill marks a significant upgrade and commitment to future operations at the facility and increased potential for private timber owners seeking new market opportunities for smaller-dimension timber, Miller says. Starting later this year, Stimson will begin preparing the Forest Grove mill for a 350-foot-long HewSaw line made by Veisto-Oy based in Finland. Miller said he expects the new sawline will be operational in early 2026 and that the existing line will continue operating without a lapse in production. …Miller anticipates production will triple when the new mill is fully operational. The current mill employs 90 people, but Miller anticipates the new technology will ultimately require fewer employees once operational.

Related in Oregon Live: Stimson plans upgrade to increase production from younger trees

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Annual election results for Cabinet Makers Association

By Dakota Smith
The Woodworking Network
June 27, 2024
Category: Business & Politics
Region: United States, US East

Hans Parker

GRAND RAPIDS, Michigan The Cabinet Makers Association (CMA) announced the results of the annual election for the organization’s board of directors and the installment of its officers. The general members of the CMA elected Amy Thrasher Price of D&H Cabinets (Lindale, Texas) and Kolin Veldman of K&S Woodworks (Lynden, Washington) as new board members. …Earlier this year, Hans Parker of Board Foot Co. (Kalamazoo, Michigan) took over the board position from Brian Clancy of Clancy Woodworking (Sherman, Connecticut), who resigned due to other commitments. The following officers will remain in their appointed roles until June 30, 2025: 

•    President: Randy Niewind, Randy’s Cabinets & Woodworks (Grand Rapids, Minnesota) 
•    Vice President: Lois Snyder of Periwinklers (Tarpon Springs, Florida)  
•    Treasurer: Terry Steffey of Dibbleville Woodworks (Fenton, Mchigan) 
•    Secretary: Gregory Paolini of Gregory Paolini Design (Canton, North Carolina)  

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Bar Pole and Piling Revives Mississippi Mill, Creates 20 New Full-Time Jobs

By United Bancorporation
PR Newswire
June 25, 2024
Category: Business & Politics
Region: United States, US East

QUITMAN, Mississippi — UB Community Development (UBCD), a community development partner of United Bank, provided a combined $10 million in Federal and Mississippi New Markets Tax Credit funding to aid in construction of a utility pole mill in Quitman, Mississippi. Bar Pole and Piling purchased the site of the former Bazor Lumber sawmill in Spring of 2023. …Once construction is complete, the new BP&P facility will include new technology and equipment that detects defects in logs prior to being processed into poles. The poles will then be sold to pressure treatment plants. Upon reaching full capacity, the mill is expected to create twenty full-time jobs. ..Bar Pole and Piling will partner with local loggers who harvest and deliver the bark poles to the facility. This project will help expand their presence into the southeast portion of the country.

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Three-generation family-owned New Hampshire sawmill destroyed in fire

By Ray Brewer
WMUR Manchester
June 24, 2024
Category: Business & Politics
Region: United States, US East

BOSCAWEN, New Hampshire — A Boscawen sawmill that has been run by the same family for three generations is gone after an early morning fire leveled the business days before the owners were set to retire. The official cause of the fire is undetermined, but the owners said they have no doubt it was started by lightning. “This is history right here that has been burnt to the ground,” said owner Lynn Colby, of Colby Lumber. For nearly a century, the Colby family ran the sawmill. Now, all that’s left is rubble. …Video from a witness showed the sawmill building fully engulfed in flames when firefighters arrived at the Colby Sawmill. A passerby called in the fire at around 4 a.m. The fire would eventually go to two alarms, fed by more than just the wood in the sawmill.

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Södra Pulp’s kraft lignin plant will be the world’s largest

By Andritz AG
EQS-News
July 3, 2024
Category: Business & Politics
Region: International

Swedish forest industry group Södra has selected international technology group ANDRITZ to supply a complete solution for kraft lignin production to its Mönsterås pulp mill in Sweden. This major investment marks Södra’s entry into the lignin market as part of its strategy to make the most of the wood used in pulp production. This will be the first commercial kraft lignin plant in Sweden and the largest in the world. Kraft lignin is used in pulp mills to generate energy… however it can also be used as a renewable resource to replace fossil-based materials in the chemical industry or form the basis for new biofuels. …This is a big investment for Södra and the green transition,” says Karin Dernegård, Mill Manager at Södra Cell Mönsterås.

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New Zealand Wood And Wool To Benefit Through New Trade Deal

By Todd McClay, Minister of Trade
The New Zealand Government
July 2, 2024
Category: Business & Politics
Region: International

Todd McClay

New Zealand concluded a groundbreaking trade deal with Costa Rica, Iceland, and Switzerland, to remove tariffs on hundreds of products that benefit sustainability and the environment, Trade and Agriculture Minister Todd McClay says. “The Agreement on Climate Change, Trade and Sustainability (ACCTS) opens up commercial opportunities for New Zealand businesses by focusing on trade in sustainable goods and services. Crucially for New Zealand, it will see tariffs removed on key exports including 41 wood products and wool. “It will also remove tariffs on hundreds of other products, including wool fibre, slag wool for insulation, recycled paper along with energy saving goods like LED lamps and rechargeable batteries. …“ACCTS will open new markets for New Zealand exporters and grow in benefit over time as more countries join.” 

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