Pulp and Paper Canada

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Neenah shuts Terrace Bay mill


March 1, 2005
By Pulp & Paper Canada

Neenah Paper is planning to close one of its two pulp mills at its Terrace Bay, Ontario pulp operation. The No. 1 m…

Neenah Paper is planning to close one of its two pulp mills at its Terrace Bay, Ontario pulp operation. The No. 1 mill, originally built in 1948 has an annual capacity of 125,000 metric tonnes of pulp. The company expects to sustain charges of roughly $7 million. The mill is scheduled to close in the second quarter.

"This is a difficult but necessary step if the Terrace Bay facility and the associated woodland operations are going to be viable," said Sean Erwin, CEO of Neenah Paper. "Terrace Bay and its woodlands have been identified as one of the highest cost pulp operations in Canada. The smaller scale of the No. 1 mill did not justify the investment necessary to compete successfully in today’s global pulp market."

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In addition to allowing the company to improve its No. 2 mill, the closure is expected to improve cash flows by $2 to $4 million per year.


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