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AV Nackawic contemplates closure


November 11, 2008
By Pulp & Paper Canada

The AV Nackawic mill might be taking an extended holiday this December as company officials weigh the possibility o…

The AV Nackawic mill might be taking an extended holiday this December as company officials weigh the possibility of shutting the facility for four to six weeks. According to a report by the Daily Gleaner, a poor economy and excess inventories are behind the possible closure.

“The union executive met with the company today and (we’re told there’s) an 80 to 90 per cent possibility of a four to six week shutdown starting in December,” the Gleaner reported Mark Cloutier, president of the Canadian Auto Workers Local 210 as saying. The company expects to render a decision next week.

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While the majority of workers would be temporarily laid off if the closure goes ahead, the Gleaner confirmed some would retain their positions in order to keep the mill’s boiler up and running.

Despite challenging market conditions, mill management remains confident about the operation’s long-term viability.

“We put a lot of money into this to make it a world-class operation so I don’t hold any concern about the long-term,” the Daily Gleaner reported AV Group president and CEO Peter Vinall as saying. “This is a short-term market issue.”


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