The clean-up at Marathon Pulp in Ontario will now have to wait until the spring.

1.4 million litres have been trucked to AbitibiBowater's mill in Fort Frances, and to the Clean Harbour Hazardous Waste facility in Sarnia.

However, 270,000 litres of chemicals that were scheduled to be transfered next week, have congealed because of the cold weather. They will not be able to be transported until the spring.

Chemical effluent is still being pumped from a pipeline and into trucks to be dumped into a nearby spill basin. The process is expected to take another 2 weeks.

Source:
Marathon Pulp cleanup hits snag

All 8 of the unions at Corner Book Pulp and Paper in Newfoundland have voted in favour of a wage deferral request from Kruger Inc.

Kruger asked the unionized workers to take a 10% cut in their pay. If the mill is able to improve its bottom line, then the 10% willed be paid back.

Source:
Mill workers vote to accept pay cut (The Western Star)

The provincial government of Newfoundland and Labrador has assumed custody and management of the former pulp and paper mill and property in Grand Falls-Windsor, as well as Grand Falls House and the former mill manager’s house, upon notice that AbitibiBowater is handing the assets over to the province.

AbitibiBowater had been taking care of the security of these assets and environmental monitoring since the pulp and paper mill ceased operation in March 2009. AbitibiBowater was ordered to provide an environmental remediation plan and the company is appealing this order and others related to the remediation of their former assets in the province.

The company formally notified the provincial government on Feb. 2 that it was vacating the buildings.

“Now that Abitibi has decided to withdraw from the province, it is incumbent upon the Provincial Government to maintain the status quo of the buildings to ensure that public safety and the environment are protected and maintained,” said Kathy Dunderdale, Acting Premier and Minister of Natural Resources.

“Our taking custody and management of these buildings at this time no way reduces, eliminates or mitigates any responsibilities Abitibi may have in respect to remediation or environmental liabilities. While the legal issues around these properties unfold, the Provincial Government will ensure these assets are secure and do not become a risk to public safety or to the environment.”

Read more:
Province assumes custody and management of closed mill in Grand Falls-Windsor (The Western Star)

Tolko president, Al Thorlakson, stepped down yesterday.

Thorlakson is one of the richest lumberman in the country. Thorlakson took over as president from his father who formed the company over 50 years ago.

Brad Thorlakson, son of Al, will take over as president.

Tolko has grown into one of the largest private forest companies in Canada, with operations in British Columbia, Alberta, Saskatchewan, and Manitoba. The company employees 3,500 and has revenues of $1.5 billion.

Read more about Al Thorlakson, and his lifestyle as an "ordinary guy in ordinary clothes", read Tolko president Al Thorlakson steps down (Vancouver Sun)

The workers of the idled Tembec newsprint mill in Pine Falls, Manitoba have refused to support a former employee's bid to buy the mill.

On January 14th, J.P. Bradette, former Tembec sales executive, outlined his purchase plan at a meeting in Pine Falls.

Bradette is willing to offer employees significant ownership in the new company. He would create union jobs for 180 people, plus 20 staff positions. Bradette believes, if his bid is successful, the mill could be making paper by July 1.

The employees said Bradette's plans call for cuts to production costs by reducing wages and implementing layoffs. Cam Sokoloski, president of the United Steelworkers, said the proposed cuts were too deep.

Sokoloski said the union is looking to make an offer of its own with support from the nearby Sagkeeng First Nation.

Letters of intent are due by Monday.

Source:
Workers balk at bid for Pine Falls mill (CBC)

PRT Forest Regeneration Income Fund today announced receipt of $4.6 million in insurance proceeds as cash settlement for damages to greenhouses resulting from an unusually heavy snowfall in December 2008, as previously reported by the Fund.

The greenhouse losses occurred in the lower mainland of BC, with the majority at PRT's Maple Ridge nursery which was permanently closed in 2009. The settlement amount is expected to exceed the underlying book values of the damaged assets, and the resulting gain for accounting purposes, once determined, will be netted with other gains or losses arising from the nursery closure, and reported in the December 31, 2009 consolidated financial statements of the Fund.

Source: PRT Forest Regeneration Income Fund

The Bowater Mersey paper mill in Queens County, Nova Scotia, has returned to full capacity.

Dave Coles, president of the Communications, Energy and Paperworkers Union of Canada that represents 258 workers at the mill said "the export market has solidified a bit. We’re starting to be a little cautiously optimistic."

The Bowater Mersey mill is co-owned by AbitibiBowater and The Washington Post. The mill is not operating under bankruptcy protection like AbitibiBowater's other mills.

Read more:
Bowater back at full capacity - Union credits lower dollar, increased demand for newsprint from U.S. (Chronicle Herald)

Domtar is reporting a quarterly net profit of $124 million in its 4th quarter of 2009. In comparison, Domtar reported a net loss of $676 million in its 4th quarter of 2008.

In the 4th quarter of 2009, Domtar received a tax credit of $162 million through alternative bio fuel mixture programs.

"We had improved pricing for our products in the fourth quarter when compared to the third quarter. In Papers, we recorded another solid performance despite it being a seasonally slower period, with lower volumes and higher maintenance costs. Our paper inventories were reduced for a fifth consecutive quarter contributing to cash flow," said John D. Williams, President and Chief Executive Officer.

"We also moved forward with the Canadian Pulp and Paper Green Transformation Program submitting numerous projects to Natural Resources Canada during the quarter. We completed the environmental assessment for one project while six others are currently undergoing their assessments," added Mr. Williams.

Domtar has recorded net earnings of $310 million ($7.18 per share) for its fiscal year of 2009, compared to a net loss of $573 million ($13.33 per share) for fiscal year 2008.

Commenting on the 2009 performance, Mr. Williams said, "While we faced a high level of lack-of-order downtime and a steep decline in pulp prices in the first half of the year, we benefited from stable prices in papers and kept our inventories low. Meanwhile, our efforts to reduce working capital and lower fixed costs proved to be a catalyst for the second half of 2009. The sustained focus on customers, costs, and cash helped us deliver a stronger company to our shareholders and to start 2010 with optimism."

Read more:
Domtar Corporation reports preliminary fourth quarter and fiscal year 2009 financial results (Domtar)

Jamie Simpson, forestry program coordinator at the Ecology Action Centre has been an outspoken critic of the some controversial biomass harvesting methods carried out in Nova Scotia.

Simpson's photograph of a recent harvest carried out by Northern Pulp, showing a barren clearcut, has been shown by the media multiple times in recent months. While speaking out against these harvests, and the use of whole-tree harvesting for biomass production, Simpson has identified himself as a forester, with an RPF status.

The Chronicle Herald quoted Jamie Simpson as saying the cuts were "the worst of the worst, and the science is clear that this practice is not sustainable.

"It’s hard to believe this is happening in Nova Scotia in the 21st century," Mr. Simpson said about a site near Caribou Mines that was harvested last fall by Northern Pulp Nova Scotia Corp.

"It’s an embarrassment."

The Registered Professional Foresters Association of Nova Scotia has filed a formal complaint against Simpson. The Association says Mr. Simpson has breached the professional code of ethics.

Ian Miller, president of the Nova Scotia Association, said in a letter of complaint, that Mr. Simpson misrepresented his qualifications by using the registered professional foresters designation he attained in New Brunswick, a designation that only applies in that province and not in Nova Scotia. The association has asked that Mr. Simpson "cease and desist" using the RPF designation in this province when dealing with local forestry topics.

The Nova Scotia association has also complained that Mr. Simpson breached the association’s code of ethics by publicly calling into question the work of other foresters, and by actions that reflect poorly on the profession.

Mr. Simpson has a master’s of science degree in forestry from the University of New Brunswick. He has worked on a variety of forest conservation and forest certification projects in Nova Scotia, New Brunswick and Mexico, and recently authored a book about forest ecology and restoration for woodlot owners in the Maritimes.

The Registered Professional Foresters of New Brunswick has received the complaint and will have a committee investigate, and if warranted, will refer the matter to a disciplinary committee.

Read more:
Forestry association cries foul - Complaint filed against outspoken critic of harvesting practices in N.S. (Chronicle Herald)

International Paper has reported their preliminary full year, 2009 net earnings, along with their 4th quarter results.

2009 - net earning of $663 million
2008 - net loss of $1.3 billion

In the fourth quarter of 2009, the company reported a net loss of $101 million ($0.24 per share) compared with a net loss of $1.8 billion ($4.25 per share) in the fourth quarter of 2008. Amounts in all periods include special items.

During 2009, International Paper generated $4.1 billion of free cash flow (cash provided by operations less capital expenditures), compared with $1.7 billion in 2008, reflecting reduced capital spending and continued focus on working capital management and overhead spending control, as well as $1.7 billion received from alternative fuel mixture credits. The company also repaid $3.1 billion of debt during 2009. At year end, the company had $1.9 billion in cash and $2.5 billion in committed liquidity facilities.

"Despite all the uncertainties we faced at the beginning of 2009 and throughout the year, plus the challenge of rising input costs in the fourth quarter, International Paper overall has delivered solid results," said John Faraci, chairman and chief executive officer. "Our focus on reducing overhead costs, matching our supply with our customer demand and realizing Industrial Packaging synergies gave us the ability to generate record free cash flow and pay down a significant amount of debt while positioning ourselves for 2010."

Read more:
International Paper Reports Fourth-Quarter and 2009 Earnings (International Paper News Release)

AbitibiBowater's UK subsidiary, Bridgewater Paper Co Ltd (BPCL), has filed for administration (a form of bankruptcy in the UK, similar to a Companies' Creditors Arrangement Act filing in Canada or a Chapter 11 filing in the U.S.).

AbitibiBowater said the directors of BPCL made the decision after exhausting all other options to keep the UK operations solvent.

“We recognize the impact the filing has on our U.K. employees and business partners; however, these actions were necessary and represent the best course of action going forward,” said AbitibiBowater president and CEO David Paterson.

The British recycled paper mill in Liverpool employs 300 people and produces newsprint that’s used primarily by British newspaper publishers. Its two paper machines have an annual capacity of 220,000 tonnes and sells British and Canadian produced paper.

Joint administrators from Ernst & Young LLP have been appointed as part of this filing and will manage the affairs, business and assets of BPCL.

Read more:
AbitibiBowater’s Bridgewater subsidiary under administration in Britain (The Record)
AbitibiBowater UK unit files for administration (Reuters)

AbitibiBowater is restarting its #5 paper machine in Thunder Bay, Ontario this week.

The paper machine has been down for 6 months. The restart has brought 177 people back to work.

The first newsprint is expected to roll out on Wednesday or Thursday.

As a result of the restart, Thunder Bay's fire and rescue officials are warning people - especially people on snowmobiles - to stay off the Kaministiqua River. Water is used by the paper machine and it is discharged into the river. When this happens, the ice covered river will melt.

Source:
AbitibiBowater readies paper machine restart (TbNewsWatch)

The Forest Products Association of Canada released a report today that looks at the future of forestry in Canada.

Avrim Lazar, president of the association, said the forest industry needs to extract the maximum value "from every tree harvested". "What we need is a shift in business model, a new business model that still produces lumber, pulp and paper but also extracts maximum value from every tree harvested," Lazar said.

The study, based on interviews with 65 experts as well as industry leaders and government, predicts a bright future for the forest industry despite the economic downturn and the resultant 50,000 job losses and collapses in the demand for lumber and paper.

The forest products association is calling on Ottawa to offer economic stimulus to facilitate the change through research, tax measures and other funding.

"The message for government is that we have to re-examine our policies and programs to make this possible. It's not government's job to support the status quo, to inhibit change. It's government's job to accelerate this transformation," said Lazar.

While demand for paper will continue to wane, he said most of the industry sees good future demand for lumber, pulp, bioenergy and other new wood products.

The challenge facing the industry is to capitalize on the demand for new products to restore growth, the president said.

One way of doing that is to diversify markets and reduce forestry's dependence on the United States, he said.

Read the report from the Forest Products Association of Canada: http://www.fpac.ca/index.php/publications/publication-viewer/392/

Read more:
Forestry industry must diversify, capitalize on demand for green energy: study (Winnipeg Free Press)
Forest industry pitches new bio-products (CBC)

Zhejian Fulida Ltd., China's largest producer of rayon fibre, has bought an ownership stake in Port Alice's Neucel Specialty Cellulose.

The deal will inject new capital and ownership into the northern Vancouver Island pulp mill. Part of the deal includes a long-term supply agreement.

"Fulida is a new part owner. Our ownership base has changed," said Jim Herculson, Neucel vice-president of finance. "It's also an infusion of capital. We are not going to use it for working capital. It's going to be used entirely to enhance the business."

Neucel Specialty Cellulose is the largest employer on northern Vancouver Island, employing 400 people. The company is considered a success story in the area. The mill was salvaged from bankruptcy after being sold, stripped of equipment and re-sold after the Doman Industries failure. As Neucel Specialty Cellulose, the mill has survived the market downturn, and the company is profitable. It is owned by a consortium of investors led by two U.S. financiers, Wellspring Capital Management and the Granite Street Capital Group.

Read more:
Chinese buy a stake in Vancouver Island pulp mill (The Vancouver Sun)

The unions at Tembec's Kapuskasing mill have voted to accept a 10% reduction in wages.

In the release, Coalition Leader Bob Pellow stated that the deal, which the press release called a "forgivable bridge loan" not a wage cut, will last until Dec. 31 of this year, or until an eastern CEP pattern settlement is reached with AbitibiBowater.

Negotiations will not resume until Jan. 1, 2011 or if there is a CEP eastern pattern settlement, which ever comes first. Pensions and severance calculations will not be included in the loan.

Read more:
Unions accept Tembec request (The Northern Times)