A press release from Superior Fine Papers
Feb 7, 2009 | In Mill Expansions/Openings | 105 feedbacks »
The recently idled Thunder Bay Fine Papers mill located in Thunder Bay Ontario has new life under the banner of Superior Fine Papers Inc. The mill which had previous lives under the Provincial, Abitibi and Cascades banners will move forward again under this new SFP banner. For the community, this is a breath of life returning most of the former jobs and countless spinoff jobs to Thunder Bay, at a very opportune time.
The new leadership under Jay, Andrew and Dan Sinclair worked tirelessly over the last few months to make this dream a reality. Former Shareholders of the mill have also stepped forward and provided their support to the project.
The start date for operations has not yet been set, but a spokesman said that it would be a matter of weeks as opposed to a matter of months.
The mill had invested in excess of $20 million dollars in upgrades under the TBFP banner and this will serve the new company very well. Double coated products as well as other machine enhancements and speedups will make the products out of SFP second to none in the coated paper industry. SFP will now be the only Coated free sheet mill in Canada and is well positioned to serve the North American market.
The veteran sales team comprised of Marc Goguen, Bob Best and David Hunter have all stayed committed throughout this process and are very optimistic of the mill’s opportunities and niche grade structure. “The market is always ready for great products at the right place and the right price”, says Goguen, VP Sales and Marketing, “and we are in the process of talking to customers about this right now. The reaction has been overwhelming. In fact we have letters of commitment from our key customer base in excess of 90,000 tons, which is roughly half of the mill’s output; we are all overwhelmed by the support.”
John Hitchman the VP of Operations for SFP is also very keen on the mill’s prospects. “The machines are ready to roll and all we need is a few weeks to get the Supercalendars ready and run some paper” says Hitchman who had been with the mill in the 1970’s and 80’s is well seasoned and ready to lead this production team.
SFP acknowledges and thanks a myriad of people for their support; the City of Thunder Bay, the Ontario Government, the MNR, the 4 unions and our many customers throughout North America.
Superior Fine Papers will be making known brands such as Jenson Plus, Thunder Gloss and Route 88 as well as host of coated and non coated postal reply card products. The mill also plans on introducing several niche grades that can respond to recent market demand.
Source:
Marc Goguen
Vice president, Sales and marketing
Superior Fine papers
105 comments
What they dont need is people who were fired at Bowater for sleeping on the job because they have union leadership, and a fluffed resume.This is the areas of concern for the public sector in Thunder Bay. What they do need is forward thinking people who want to earn their pay not expect it. As for union involvment....would it ever be nice to see the Saturn concept if you know what that is. Leadership by example and not seniority!!!
Good luck SFP
Good luck, Thunder Bay needs this.
Obviously you’re a person of little depth. To say the Saturn concept is “Leadership by example and not seniority” is like saying “Oboma was elected because he is white”. You clearly are trying to sound intelligent but in doing so you have contradicted and discredited yourself all at the same time.
Back in the 90’s, major unions from steel workers, automakers to forestry pushed for management teams to attend the Saturn facility to learn that their number one asset was the unionized employees. Saturn went on to make millions once the management team included the union in all levels of decision making.
Surely, Mr. Concerned, you have not even seen their philosophy makeup, their collective agreement or their model of empowerment.
I’m almost embarrassed for you. If you want to feel important online, perhaps you should stick to other sites.
There you can tell everyone you have a full set of hair and not be called on it.
It had two machines, one built in 1981 and one
built in 1988, with a total capacity of 500,000 tons.
If this mill was considered to be "non competitive" in
the current market conditions, pray tell how can Superior Fine Papers possibly survive long term?
You missed my point and attacked me as if you are some form of knowledge. You probably sleep on the job too...and then cry to the union for protection when you get caught?
Something smells here. The local paper announced last fall the Thunder Bay Fine Papers had secured a 10 million dollar line to keep the mill operating. These funds seemed to have disappeared into thin air. 2 weeks later it was in receivership. Now...the local paper reported that Mr. Jay Sinclair stated that he would have the 35 million in place by the time court reconvened the following week. The next thing you hear..after the court approves the purchase...is that they are looking for 35 million to open Superior Fine Papers. Is this a stalling attempt to allow the government to inject MORE funds into this supposed new venture. Could someone tell me where all the money went from the last fiasco...and is there any type of government watchdog that looks into situations like this to see if someone did actually line thier pockets from the last go around as a previous commentor mentioned. Show me the money....honey.
The 4th paragraph explains to you where the money went.
“20 million in upgrades”
Furthermore, there was millions in inventory at the time of receivership. Plus, over a hundred employees on the payroll with no sales revenues coming back to the site. How is this hard to understand? I realize with leadership comes criticism, but really - give Mr. Hitchman and his team the benefit of the doubt.
The mill has great potential. Proven quality. Experience employees. If the sales team can find a market, the site will be a great success.
Why don't you think about the families that were affected by this poor attempt made at starting up Thunder Bay Fine Papers. Logic says this...start one machine...focus on one machine and as you make progress and profit..then move on to the next machine. Inventory, why is it still sitting in a warehouse. And please don't tell me it has all been sold. If a logical approach was made at TBFP, then the mill wouldn't be in the predicament it's in now. Why not just admit...they spread the money all over hhacre with no business plan in place and this is how the former employees see it. Doesn't take a rocket scientist to figure it out. So you give everyone the benefit of doubt, you're one of few.
Hey, no doubt the money was spread all over. The vision was to have 3 machines running with a new wood room and a co-gen plant. Perhaps this was a promise to the shareholders? What ever the case, the money was spent with the intention of longevity and success. There were no Band-Aid fixes and big capital expenditures. My point is, the money just didn’t disappear or a “cash grab” by the board. It is invested in the site and it’s primed and ready to go. If there are “orders” the Sinclairs bought a hell of a site. As for the inventory – millions of dollars was there at the time of receivership. Sold or not- the previous writer was asking where the money went. I don’t think it’s fair to discredit or put false accusations towards a group of individuals that tried so passionately to restart the site. I hope for their success, Thunder Bay needs it.
There is still a good chance for this mill to make money!!!
I think the economy is a critical area of concern but there is a demand for printing papers... the key would be to get one of those machines trimmed to produce a niche product, maybe a form of coated printable or a specialty paper that would get a few of the print shops wanting to use the product.
Head to a print shop and witness the various elements to prodicuing a high quality advertisment and you will gain a new perspective regarding a demand or a economy.
If SFP can get a few tons out and converted, they will quickly gain some confidence in the print industry. If the department heads and supervisors are going to run around blaming the o.m.c or the stack rolls for defects and not root cause quality issues in an accountable fashion..... just leave the place down.
For the first time, I somewhat agree with you. Paper products don’t always go down in demand when a slow economy hits. For instants, more people eat fast food that fine dining, McDonalds is all paper waste. More individuals go to school which requires a demand in books. The world demand does not change for tampons and other feminine products. Perhaps more people will by a magazine rather than go the theater.
What ever the case, if the sales team can fine a market the mill is ready to meet the demand.
After reading all the comments, Mr. Concerned, you seem to have a passion for the topic but a strong negative flair for the Management of the site. Yet, if I “read between the lines”, it sounds like you were once one of them? Furthermore, you would be willing to come back to Thunder Bay to help start it up. Comments on 09/02/09. If correct, are you not just calling yourself down? Why would you what to work with such incompetent people? What make you think that they would want you back after all your negative bashing? I would have to agree with “ Stay Away” – Stay away.
Whats up your sleeve next?
I was there , where were you....
It is always the way, were there no provisions that if the mill was bought out that the suppliers would be paid as well?
I know we are not shipping any parts until we have been compensated for the last go around.
I have faith in the mill, most of the people who I know are employed there again and would welcome the chance to put my efforts toward making it a viable place to work and make a decent living from....
And even if they loudly proclaim otherwise,it'll be more like a 2011,2012 startup date.Doesn't matter which "genius" they choose to run this outfit,it's simply not going to happen.How can we "buy Canadian",when we can't even afford to keep a roof over our heads and food on the table?
The whole USA direction is intended to restart manufacturing, of course in the USA, this can be a very positive element to the glory days of the 70s and 80s in Canadian paper.
The manufacturing facilities will need to "package" and display" their products... this means there will be a turn in the next 4 to 6 months for a need to attain the paper grades to convert into boxes and of course image pac products such as tide boxes or beer cases. I am an optimist and believe that S.F.P. will start and produce a quality product....which will be in demand again, label grades such as the wet strength and coated card stocks will again become a need to fuel the USA plan...
Come on people think about it, would the USA go to Asia to buy boxes if the need for packaging is in the newly developed manufacturing plants across the USA, The Canadian dollar will once again be a controlling factor in the demand for paper orders out of Canada... And for the comments about all the paper mills in the world shutting down... not true there are allot of small privately owned mills running at full capacity... Take Atlantic Packaging they are running at full tilt always, why....because they have a sound business plan a realistic union....
Certainly they would,if it meant securing the Asian market for future trading partners.One hand washes the other,so the saying goes.The USA will wheel and deal where the biggest market is,and where it would be most favourable to them.Canada would probably rate behind countries like China and India,so "buy Canadian" is pretty much meaningless right now.Until the world economies improve,the mortgage and housing mess in the States is resolved,and folks have readily available credit to purchase goods,everything's at a standstill.With companies like GM laying off 1,200 employees,somehow I don't think outfits like SFP stands a snowballs chance in hell for longterm substainability.They're going to have to do what every other company is having to do--wait till the markets are better,which won't be happening for some time to come.
Can no one put these poor people out of
their misery and let their lives move on? Say something to the public or just
close the door, by the time if and when
you may get something running, these
ex employees will be long gone. They cannot wait forever as most of the U.I.C. benefits will run out soon or they have already.......Come on and
say something one way or another....
(Netnewsledger.com)Denis Lebel announced $1 billion over two years to help communities; more money and resources for Export Development Canada, to facilitate assistance for companies such as forestry companies,$8.3 billion for the Canada skills and transition strategy
-Not solving the problem with the high energy rate. Trying to get everyone out of the forestry sector.
with and let the people know what's going on....Obviously there will be no
start up soon and there has not been any
news of any kind so go ahead and let
people get on with their lives.
How can you put people thru this
emotinal mess??? Do you not know what this is doing to Thunder Bay families??
Get the news out there once and for all!
The Alberta economy is set to shrink this year, and the government is set to post a massive deficit. When you've got all these people with lives they can't afford, I'd say things are going to get pretty ugly if this drags out much longer.
The paper grades this mill can produce are simply completely oversold right now.
There are many paper machines in North America that are taking downtime for lack of orders, but this could change dramatically this fall if the U.S. economy gains steam.
It is no use trying to open this mill right now without a good order book, or they will be bankrupt permanently before Christmas.
Timing is everything when trying to restart this mill, and now is not the right time. Relax & Enjoy the long weekend.
Where does Superior Fine Papers expect to find customers..even if they start up.
“The first quarter continued to reflect the unprecedented decline in spending for advertising, particularly for those customers using print media. Demand for coated paper has declined more than 30% compared to last year and our customers – mostly printers, magazine and book publishers, and catalogers – continue to face similar pressures in their businesses,” said Mark A. Suwyn, NewPage executive chairman. “These challenges have been further exacerbated by our customers managing their cash flow by reducing their inventory levels. To balance supply with demand, we will take at least 300,000 tons of market-related downtime in the first half of 2009. This is in addition to the 1.1 million tons of capacity we shut down last year.
Remember the large North American players in these coated fine paper grades (Newpage, Stora Enso and Domtar etc.) now operate almost excusively in the United States.
Superior Fine Papers is located in Canada very near to some large Kraft mills (great fiber source)and it's initial underfunded startup last year proved that all the technical elements are in place for a successful startup capable of efficiently producing a high quality product.
If the Canadian government would institute a "buy Canadian" policy preference, only a fraction of what they buy annually could keep the SFP mill in Thunder Bay busy all year.
Also, the more permanent mill closures the big players make down south, the more room there will be for a small Canadian competitor, once the U.S. & world economies recover.
As long as this mill has not been scrapped or damaged by winter, there is still a possibility that it may reopen, but only if quite a few critical factors lineup.
Besides sufficient orders, this mill will require a significant cash investment (at least $35 million according to company officials) to make it possible to reopen.
This is probably a far tougher hurdle to overcome than getting orders.
Hopefully they will announce this program soon.
"Cascades bailed on it for a reason. No demand."
WRONG!!!
Cascades bailed because of the energy costs ~ Go google it ... i'm sure you'll find it on the internet somewhere .....
The former Cascade mill (now SFP) faced very high natural gas & electricity costs, and since it was located in Ontario, these were some of the highest rates in North America.
It is not a coincidence that the Ontario liberals refusal to have a separate Northern Ontario power rate is one of the primary reasons why there has been so many permanent mill closures in Ontario.
Why should the (self sufficient) Ontario north region have to subsidize and pay the same imported peak power rates southern Ontario is paying to import power from New York state when the two power grids are almost completely separate from each other?
One of the best ways that the provincial & federal governments can provide stimulus to the forest products industry, is to offer grants & guaranteed loans to allow these operations to build thier own Bio-mass "Co-Gen" facilities.
Co-Gen facilities produce low cost steam & electricity, and excess electrical power can be sold back to the grid, thereby adding an important alternate revenue stream.
In Ontario, this revenue might be substantial once OPG finishes installing their VARIABLE RATE residential meters.
I refuse to call them the dumb name that OPG calls them, as the only thing smart about them is how big the pay bonus for OPG's CEO will be once the peak power money starts to flow in.
OPG has packaged these new VARIABLE METERS as being great for the environment, inorder to hood-wink the public into thinking this is going to help the environment by reducing polution, when all it really is going to do is moderately reduce peak power demand and save OPG billions of dollars in having to build new generating capacity.
Once Mr. & Mrs public starts getting up in the middle of the night to do laundry & cook their supper and their rates are hiked up to pay for the cost of installing all the new "smart" meters (likely hundreds of $millions) they will realize that they have been taken for a very big ride.
Now the (dirty coal fired) generating plants will just run more (& polute just as much) in the middle of the night.
OPG needs to forget about wasting money on replacing all the perfectly good residential meters already installed in Ontario & begin to invest in clean energy production like wind, solar and additional hydro production.
That way, no matter what time of day you buy power, you will actually be using clean power that will really make a difference to the environment.
The only way we can stop this wasteful spending and and big time cash grab by OPG is to make this a political issue heading into the next Ontario election.
Voters need to get informed and remember to vote for politicians that will take Ontario into the future with real improvements to environmental protection.
The current prices for gas & commodity electricity may be below the peak pricing levels of a year ago, but they have not dropped anywhere near as much as overall economic activity has.
If I am wrong about this than please provide the data to show that energy costs truly are now "a tiny fraction of what it once was".
You must have missed the point that adding a Co-Gen facility provides both steam (much less natural gas to purchase) and electricity to help run the plant. And excess power can be sold back to the grid thereby providing an alternate source of income to help with profitability (keep the doors open) even during economic downturns.
I do agree that energy costs are just one important piece of the puzzle if this or any mill is to reopen or we are to avoid any further permanent mill shutdowns in the Canadian paper industry.
I was not implying that the only thing stopping SFP from reopening tommorow was simply the lack of Co-Gen or reduced energy pricing deals.
I have no knowledge of what specifically is preventing this mill from reopening, but the addition of Co-Gen will significantly alter the viability of most paper mills, including this one.
I can guess that it may be a lack of financing / orders (obviously essential factors) or some other unknown reason, why this mill has not resumed production, but that would just be pure speculation.
Only a statement from the current ownership group would answer that question.
we shall see .........
Mcguinty and O.P.G. killed this plant and many others. I worked for Blowharder for 25 years. No pension, no severance. They made the rules up as things transpired. Never honoured an agreement. Gangsters ran my mill. Not the case at TBay Fines. Not even close. How do I know?
I now work in the print industry. Tbay Fines was the house supplier. Where do we now obtain our stock from?
U.S.A. and Europe. Not a single roll of coated or matte to be had anywhere in Canada.
There's a huge market for fine paper. Transcontinental and us as well hum through hundreds of thousands of tons a month. Looks like corporate America got their wish. Buy up our mills. Take the profits to re-invest down south. Then close shop here and take our orders with them. And we did not sleep on the papermachines. Many times I went home with blood in my workboots after a 12 hour shift. Legalized slavery. And watch the guys around me drop from cancer.
It was hell. Fortunately I survived.
For now.
Looks like I'm working till I'm 70. Or death. With any luck death will come first.
& Yeah! .. we are hearing & seeing pension games here as well.... kinda funny when you request to know what your 'BUY OUT" is...(AS in ... i wanna leave... what do i get?)... & they refuse to tell you until you have already signed the papers saying that you are quitting!.... Hmmmm sounds kinda illegal to me!.... & I'm talking "Blowharder" as well!!
You have nothing constructive to add to this thread?
Go away TROLL!
Sorry, I don't buy that you had no choices. I'm sure that while you lived there, other people chose to not work at the mill or move away.
Just stating my opinion here just like anyone else is free to do.
You obviously are very ignorant and have no clue when it comes to one industry towns.
And that's my opinion.
I just didn't have the patience today to deal with some little snot nosed arrogant prick.
You pretty much described our situation to the letter.
The answer to my question is important for each one of us, because it determines how much we are responsible for our lives and how much others are.
These are very difficult times for a lot of us and there are no easy answers. Blaming others is not helpful.
Sorry, but I do know a lot about one-industry towns.
& Contrary to what you just said... I have NOT attacked anyone... i have just told people out there how it actually is where i am! .. You can believe me , or you may choose not to... ur decision... but attacking?... Nope!... Informing?... Yep!
Nope.... choices are few.... make it where i am... or scoot... its all about the timing now!!
I don't expect the grouchy visitor to understand what I'm talking about...
Yup, I read what you wrote. You're still relatively young or should I say young enough.
Run a half a billion dollar machine. Thats one hell of long apprenticeship.
Seems like one hell of a waste of time in hindsight.
Who knew Axel?
Who knew.
...its nothin but a pile of junk that the scrap yards dont even want ..ekt was supposed to be involved but they have no money for it unless the government gives them some like before
Unless your operation is a Kraft mill,"you" won't be starting up anytime soon.The money for the "green energy program" doesn't kick in till next year anyway and do you honestly think the print market is going gang busters right now...more like just going...BUST!
This whole "forestry conundrum" we are presently in is a survival of the fittest and a down sizing of the whole industry.Period!
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