Pulp and Paper Canada

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Bowater takes time


September 12, 2006
By Pulp & Paper Canada

Bowater’s decision to cut back paper production while continuing to produce pulp at its Thunder Bay, ON mill, point…

Bowater’s decision to cut back paper production while continuing to produce pulp at its Thunder Bay, ON mill, points to the strengths and weaknesses of the market.

“Overall demand for market pulp remains strong, which is encouraging,” said David J. Paterson, president and CEO. “However, the continued decline in consumption of North American newsprint coupled with high manufacturing costs at Thunder Bay, including energy and fibre, as well as the overall strength of the Canadian dollar, are factors in the decision to curtail this site’s paper machines.”

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Production will be cut back as of September 16, and is scheduled to continue for a minimum of 15 days. Roughly 320 employees will be out of work during the period, and the company’s newsprint and specialty papers customers will have their orders filled by other Bowater locations.

As for the likelihood of the curtailment only lasting 15 days, director of investor relations Duane Owens said the company will be reevaluating their order books at that point, and will not be able to make any projections until that time.

The pulp mill, woodyard and forest operations will continue to run on normal production schedules.


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