Kruger has laid off 130 employees at its Corner Brook Pulp and Paper newsprint mill. The company had shut down the …
Kruger has laid off 130 employees at its Corner Brook Pulp and Paper newsprint mill. The company had shut down the No. 4 paper machine earlier this year, and has now decided it will remain down indefinitely, until the market for newsprint improves.
Two other paper machines at the mill will remain active, producing about 270,000 tonnes of newsprint, down from an annual average of 320,000 tonnes, according to an article in the Toronto Star.
The job losses consist of 70 employees at the mill and 60 in the forest operations.
Kruger’s senior vice-president for corporate affairs and communications, Jean Majeau, told CBC News that the Kruger business model for Corner Brook is based on a three paper-machine operation, but that the “priority today is to ensure the competitiveness of the two remaining machines.”
CBC also reports that Kruger will implement a price increase of $50 per tonne this summer.
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