Miramichi grounds to a halt
June 12, 2007 By Pulp & Paper Canada
UPM is closing its Miramichi mill for one year. In late August, the paper mill is scheduled to shut down for nine t…
UPM is closing its Miramichi mill for one year. In late August, the paper mill is scheduled to shut down for nine to 12 months. The nearby groundwood mill is also closing. Approximately 600 people will be put out of work due to the shutdowns.
UPMs target is to improve the long-term profitability of the coated paper business. With todays decision, UPM leaves all options open for Miramichi. We will continue to explore solutions for Miramichi during the shutdown but realize that there needs to be material changes in the business environment for the mill to start up again, Jyri Ovaska, president of the companys magazine paper division said. The Miramichi management and employees have succeeded in steadily improving the efficiency of the mill, he continued, unfortunately, their efforts could not overcome the challenges in the business environment.
The facility has two machines, which produce lightweight coated paper, with an annual capacity of 450,000 tonnes. A combination of a high Canadian dollar, decreasing prices for coated magazine paper in North America and overcapacity created an unsustainable situation for the facility, and prompted the companys decision to close it.
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