Kruger, Province Ink Deal To Prop Up Paper Mill, Forestry Sector

VOCM News Now
March 15, 2024
Category: Business & Politics
Region: Canada, Canada East

NEWFOUNDLAND and LABRADOR — The provincial government has agreed to buy hydro power “when needed” from Corner Brook Pulp and Paper to help the struggling mill through more tough times. In exchange, Montreal-based parent company Kruger “will work to identify new revenue sources from wood-based bioproducts” to diversify the operation and keep it afloat amid a dying global newsprint market. In addition, the company has agreed to sell saw logs to Newfoundland’s three large sawmills, in line with its operating plans, which government says is “essential for the stability of the forest sector.” The six-month agreement was announced in separate news releases from the company and government on Friday afternoon, with the province insisting any power purchased from Corner Brook Pulp and Paper, generated by its Deer Lake facility, won’t affect ratepayers. …Corner Brook Pulp and Paper employs more than 300 workers, with annual sales in the range of $130 million.

Gov’t of Newfoundland: Province Announces Agreement with Corner Brook Pulp & Paper

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