Bowater Incorporated shuts down its newsprint and market pulp mill in Thunder Bay, ON, due to temporary wood fiber…
Bowater Incorporated shuts down its newsprint and market pulp mill in Thunder Bay, ON, due to temporary wood fiber shortages in northwest Ontario.
Production will cease on June 28th for approximately 9 days. The shutdown will eliminate 17,000 metric tons of newsprint and 21,000 metric tons of market pulp production. These curtailments and the additional cost of wood fiber will reduce the company’s pretax operating results by approximately $10 million US.
The combination of depressed lumber prices, countervailing and anti-dumping duties imposed by the U.S. government and a stronger Canadian dollar has caused production curtailments at several sawmills, thereby creating a shortage of wood chips for the Thunder Bay mill. The company is taking actions to mitigate the disruption at its Thunder Bay mill and expects normal wood fiber flows to resume after this curtailment.
Additionally, the stronger Canadian dollar has increased Bowater’s manufacturing costs. Based on the current level of the Canadian dollar, Bowater’s manufacturing costs will increase in the second quarter by approximately $9 million over first quarter levels.
Also, on May 27, 2003, Bowater completed the previously announced sale of 82,000 acres of U.S. timberlands for proceeds of $122 million.
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