3 parties interested in purchasing Pine Falls
January 15th, 2010 | Posted in Mill Sales/Transfers | 3 comments »
There are at least 3 parties now interested in purchasing the Pine Falls paper mill from Tembec.
The potential buyers are:
- J.P. Bradette, former Tembec vice-president
- Sagkeeng First Nation
- Tembec employees
None of the potential buyers are close to making a former offer.
Whoever buys the mill will have a challenge to obtain profitability with the newsprint market so weak.
Source:
lockout over Three potential buyers emerge for Tembec’s Pine Falls mill (Winnipeg Free Press)
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With some cost efficiencies, Pine Falls would have a decent shot at surviving the current (and likely future) difficult market conditions. It has two inherent cost
advantages – among the lowest power rates in North America and a dominant market position in the US midwest. And its wood costs, though not the best quality, are not out of line with most of its competitors. Good luck to the potential investors.
Keep the ex tembec person out of this. This has setup written all over it. Perhaps the employees can team up with Sagkeeng to make this happen. The second item to be addressed would be the firing of the mill manager and head person of HR department (Pine Falls). Management would have to change in order to be viable. We all know what the leadership style has been like. This can work and I wish the union brothers all the best.
These are my opinions and thoughts.
Gerald Kraynyk
former Pine Falls employee of 22 yrs.
Taber, Alberta
hey dr. blade ..are you that idiot that now works in manitoba?