Kruger Inc. invested $170 million in investments and 750 new jobs in Quebec’s North Shore. Now Kruger said those investments and the jobs have been “seriously compromised” by the province.
Quebec’s chief forester, Pierre Levac, announced last week that wood harvest quotas will be cut in half in various areas of the province between 2008 and 2013. This reduction is planned to end overcutting of the province’s wood supply. This reduction is on top of the 20% reduction that was already announced last March.
The harvest reductions would eliminate 42% of Kruger’s potential harvest in the North Shore region.
The North Shore has only seen harvesting in the last 8 years. There was no previous forestry activity. The current harvest is chipped and supplies the Wayagamack mill in Trois-Rivières, Quebec where 620 workers are employed. Kruger invested $500 million in to this mill to restart it, in partnership with the Société générale de financement du Québec (SGF).
In addition to the Wayagamack mill, Kruger has 3 other mills in the area – in Forestville, Longue-Rive, and Ragueneau.
Kruger has also faced legal disputes and court injunctions sought by native groups over logging rights on the North Shore.
750 lumber jobs in Quebec’s North Shore at risk: Kruger Company says its wood-harvest quotas would drop by 42% under chief forester’s calculations (CBC)