Toronto, ON — Fraser Papers has announced the temporary shutdown of its 130 MMfbm sawmill in Juniper, NB effective…
Toronto, ON — Fraser Papers has announced the temporary shutdown of its 130 MMfbm sawmill in Juniper, NB effective October 5, 2007.
Peter Gordon, president and CEO of Fraser Papers, explains Despite significant efforts by our employees to minimize costs and improve operations, we have been absorbing significant cash losses at our Juniper sawmill. These losses can be attributed to weak housing markets in the U.S., continued oversupply of lumber, and a strong Canadian dollar. In addition, reduced logging activity in recent months has significantly reduced the supply of wood from private lands.
As a result, Gordon continues, we have made the difficult decision to close the Juniper mill for up to 11 months and look outside the company for an alternate and lower cost supply of woodchips and biomass during that time period for our integrated specialty paper operations located in Edmunston, NB and Madawaska, ME. The company will continue to utilize its Crown Lands Service Agreement with Acadian Timber Income Fund to harvest its Crown allocation.
The shutdown will impact approximately 175 employees at the mill.
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