Back in December, Resolute Forest Products was given a $50 million lifeline by the province of Nova Scotia to make improvements to the Bowater Mersey paper mill in Nova Scotia.

$25 million was earmarked for equipment and energy efficiency upgrades.  Yesterday Resolute Forest Products confirmed that it is putting off using that $25 million.

The company said it could not come up with a project within that price range that would be able to secure a viable future for the mill, especially considering the export market conditions of today.

Union executives have been called to a meeting with the mill’s management this morning.  There is fear that the mill will be permanently closed.

“I guess it remains to be seen, you know, as more details emerge around us, but it certainly is to me cause for concern,” said Don MacKenzie, national representative for the Communications Energy and Paper Workers union.

The mill is scheduled to shut down on Sunday for about 2 weeks.  This will be the 4th layoff since January.

Sources:
Bowater union called to meeting with company – Union executives will discuss the future of the paper mill Friday morning (CBC)
Announcement coming on struggling paper mill – Queen’s mayor: Area ‘deeply concerned’ about multiple shutdowns (Chronicle Herald)