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WFP’s Squamish to close


January 2, 2006
By Pulp & Paper Canada

Squamish, BC, has been added to the list of areas stricken by pulp and paper mill closures and shutdowns.

Squamish, BC, has been added to the list of areas stricken by pulp and paper mill closures and shutdowns.

Starting on January 23rd, Western Forest Products will begin a gradual ceasing of operations at its pulp mill in the northern town. On March 9th, the facility will shut down completely, at which point 323 people will lose their jobs.

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Reynold Hert, president and CEO of WFP, said that pulp prices have been ‘unacceptable’ for many years and have made continued operation a financial impossibility.

“We met with employees this afternoon and assured them that people would be treated fairly and according to the terms of the collective agreement and statutory requirements.”

According to preliminary estimates, the mill’s closure will result in a pre-tax restructuring charge of roughly $80 million in the fourth quarter, including a non-cash charge of approximately $46 million relating to the write-down of fixed assets and supplies inventories.

The mill has an annual capacity of 275,000 tonnes of NBSK pulp.


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