Pulp and Paper Canada

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Closures at Longlac


July 10, 2006
By Pulp & Paper Canada

Roughly 350 people will be looking for new jobs when Longlac Wood Industries shuts down its mills in October.

Roughly 350 people will be looking for new jobs when Longlac Wood Industries shuts down its mills in October.

“For some time now, we have been struggling with very challenging market conditions for our products,” Paulo Gignac, general manager for Ontario said of the decision. “While we have been able to offset this to some degree through continuous improvements in quality and efficiency, the forecast indicates a continued weak market ahead which will result in major financial losses. Unfortunately, we will not be able to sustain this beyond October.”

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Longlac, a subsidiary of Kruger, sells the majority of its products to the U.S., where demand has slowed.

Although the closures are being called ‘indefinite’ at this point, and the company will continue to ‘monitor market conditions for any indication of the fundamental, long-term structural changes in the sector’ that would make a reopening possible, Longlac has said this will not happen before October, and the closures will go ahead.


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