Pulp and Paper Canada

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Fibre supply slashes leave agreements out in cold


April 18, 2005
By Pulp & Paper Canada

A government issued decision to scale back harvesting on public land by 20% has left some pulp and paper companies …

A government issued decision to scale back harvesting on public land by 20% has left some pulp and paper companies concerned about how they will meet terms set out by previous agreements. Such is the case with SFK Pulp Fund and Abitibi Consolidated. SFK recently received a notice from Abitibi confirming that the agreement the two companies signed in 2002 might be difficult to uphold.

The accession maintains that Abitibi would supply SFK with all of its pulp needs for the next 20 years, which will now be more difficult than previously anticipated. "At this time, we are not able to assess the impact of this event on out supply of fibre pursuant to this agreement," stated Andr Bernier, president and CEO of SFK. "However, we are working closely with ACI to identify solutions to secure our wood fibre supply and to minimize the impact on our operating costs."

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