Tag Archives: Fort Frances

Boise Inc. is idling 2 production lines at its mill in International Falls, Minnesota, just over the border from Fort Frances, Ontario.

265 workers will be permanently laid off by October 1.  580 employees will remain at the mill. The mill’s timber consumption will also be slightly reduced, impacting local loggers.

By closing 2 of the mill’s 4 paper machines and an off-machine coater, Boise aims to improve the cost competitiveness of its paper business.

Boise’s President and CEO, Alexander Toeldte, said, “These closures, which we expect to occur no later than fourth quarter 2013, will reduce our annual uncoated freesheet capacity by approximately 115,000 tons, or 9%, and allow us to focus our efforts on key products and machines that drive our profitability, improve our cash flow, and enhance the overall competitiveness of our International Falls mill and our Paper business. This decision will result in the loss of approximately 300 jobs. We understand the impact this decision has on our dedicated employees, as well as the community of International Falls. We appreciate their efforts and support over the years.”

With these closure, Boise will no longer have to purchase pulp for the mill.  The remaining 580 employees will operate the two paper machines (making uncoated white office paper), and produce pulp for the two paper machines.

The Mayor of International Falls, Bob Anderson, said the news came as a complete surprise today. He said every business in town, as well as in Fort Frances and northern Minnesota will be impacted.

Source: Boise Inc.

Media Coverage:
Major Layoffs at the Boise Mill (CKDR Dryden)
Boise to cut 300 jobs, close 2 paper machines in International Falls (Duluth News Tribune)

Some mill workers of Resolute Forest Products’ mill in Fort Frances, Ontario are being temporarily recalled.

The workers will be working on a scheduled maintenance repair.

CFOB-News is reporting about a dozen CEP union members are being recalled, and some from other unions. They have been asked to report in early March.

Read more:
Some Mill Workers Returning To Work (CFOB)

The Town of Fort Frances and Resolute Forest Products has reached an agreement to resolve the outstanding assessment appeal complaints over Resolute’s mill.

Resolute had been seeking reductions of about 58%.

Instead, the property assessment will be reduced by about 25% for the years 2009-2012.

As a result, the town will have to pay Resolute a $1.763 million tax refund rather than the possible $4.098 million had Resolute been successful in their assessment appeal.

Read more from the Fort Frances Times:
Town, Resolute reach a deal on tax appeal

In Resolute Forest Products‘ financial conference call on Tuesday, President and CEO Richard Garneau mentioned the company is looking to reposition its Fort Frances mill.

“In two, three, four months, we should be in a position to determine what the future of the mill is going to look like,” Garneau said.

“We’re certainly optimistic that we can reposition the mill,” he said. “There’s a good fibre base, as you know. There is a large co-gen—45 megawatt—that we are now running at probably two-thirds of its capacity.”

The Fort Frances kraft mill and #5 paper machine have been idled indefinitely.

Read more from the Fort France Times Online:
Resolute looking to reposition mill

Resolute Forest Products is shutting down its remaining operating paper machine at its mill in Fort Frances, Ontario briefly over Christmas.

The No. 7 paper machine will be shut down on December 24 and 25.

The downtime is being blamed on market conditions.

Read more:
No. 7 machine to shut briefly (Fort Frances Times Online)

Thunder Bay-Rainy River MP John Rafferty and Kenora-Rainy River MPP Sarah Campbell met with Richard Garneau, President and CEO of Resolute Forest Products and his advisor John Valley in Toronto recently to discuss the idling of Fort Frances kraft mill and one of its paper machines.

Rafferty asked Garneau if the rumour that Boise offered to buy the Forest Frances mill was true.

“I asked him about Boise and when I said that, he kind of chuckled a little bit and said, ‘That’s the first I’ve heard of it,” Rafferty said. “You know how rumours are. Boise made a strategic decision for them to buy pulp from their Washington mill and keep those guys working, and so that’s what happened,” Rafferty added.

Rafferty told the Fort Frances Times Online that the meeting was informative and the group also discussed Resolute’s operations in Thunder Bay and Ignace.

Rafferty said he left the meeting feeling “cautiously optimistic” and felt that Garneau “has great hopes for Fort Frances.”

Rafferty said Garneau also renewed his commitment to “working towards fully funding pension plans,” and said the company would have a representative come to Fort Frances in the future to speak to pensioners and employees and answer their questions.

Read more:
Boise offer to buy mill a rumour: MP (Fort Frances Times Online)
Rafferty Meeting With Resolute (Magic 99.9)

Resolute Forest Products estimates the company will incur a charge of approximately $12 million for severance and other termination benefits, and $5 million in other closure costs resulting from the indefinite idling of the kraft mill and one paper machine in Fort Frances, Ontario.

Total future cash expenditures associated with these items are expected to be approximately $14 million.

Resolute Forest Products also expects to incur approximately $32 million of non-cash asset impairment charges to reduce the carrying value of the assets to their estimated fair value.

The indefinite idling will reduce Resolute’s market pulp and specialty paper capacity by approximately 200,000 and 100,000 metric tons, respectively.

239 employees are affected.

Source: Resolute Forest Products

Many people are deeply worried about the future of Fort Frances, Ontario after Resolute Forest Products announced the indefinite idling of both the kraft mill and of paper machine #5.

239 lay off notices were sent out yesterday.   Approximately 200 employees will stay on to operate paper machine #7.

Larry Kellar, president of Communications, Energy and Paperworkers Local 92, told the Fort Frances Times that he expects some mill workers will stay around to see if the kraft mill and paper machine #5 are restarted, but he thinks many will leave.

Kellar said he believes it is vital for the mill to find a market for selling kraft.  Last month the Boise Inc. paper mill in across the river in International Falls, Minnesota stopped regular pulp purchases from the Fort Frances mill.

“Truth be told, if they can’t bounce back from this, this mill will not survive with one machine, not forever,” warned Kellar, adding the paper machines in Fort Frances are smaller than at many other mills.

Fort Frances’ mayor, Roy Avis, said a shutdown had been rumoured for some time but the news yesterday was grim nonetheless.

Kenora-Rainy River MPP Sarah Campbell said, “This is a very difficult day for Fort Frances and all of Northwestern Ontario, and my thoughts are with the 239 workers and their families who have been affected by this decision.”

Thunder Bay-Rainy River MP John Rafferty said yesterday’s announcement of 239 layoffs at the local mill “are devastating for the workers and their families, and are a significant threat to the struggling Northwestern Ontario economy.”

“This news came as a shock today,” Rafferty said. “My heart goes out to the families and constituents who are directly and indirectly affected by these layoffs. My staff and I are ready to assist anyone who will be affected by this devastating announcement.”

Sources:
Kraft mill, #5 machine idled (Fort Frances Times Online)
Poll: How do you feel about the future of Fort Frances? (Fort Frances Times Online)

Resolute Forest Products has announced the indefinite idling of the kraft mill and paper machine number 5 (PM5) at its pulp and paper operation in Fort Frances, Ontario.

The kraft mill has an annual production capacity of approximately 200,000 metric tons of market pulp, while PM5 has an annual capacity of 105,000 metric tons of groundwood specialty printing papers.

“The markets for these products are challenging and are expected to remain so. The kraft mill situation is particularly difficult given Fort Frances’ operating configuration and the recent decision by a key customer to stop consuming the pulp supplied by Resolute to its mill,” said Resolute’s President and Chief Executive Officer, Richard Garneau. “Our kraft mill’s drying capacity is limited to about 40 percent of its production capacity, making it impossible to continue operating the mill in a profitable manner.”

Resolute is exploring alternative product possibilities for its Fort Frances pulp mill, which will be idled in a manner that will protect the equipment.

The idling of PM5 is driven by the decrease in consumption as well as the high value of the Canadian dollar.

“We will monitor market conditions closely and work with key stakeholders to explore ways to improve the mill’s cost position,” added Garneau.

The running down of fiber inventories and orderly shutdown of the Fort Frances kraft mill is expected to be completed by late November. PM5 will also continue to operate until late November.

Approximately 239 employees will be impacted by the idling.

Resolute Forest Products will work with affected employees, all levels of government and other local authorities on programs to lessen the impact of the idling. Resolute employees affected by this idling will also be considered for job vacancies and opportunities at other company facilities. In all cases, employees will be treated in accordance with the applicable collective agreements and Provincial legislation.

Source: Resolute Forest Products

The workers of CEP Local 324-6 that work at Sonoco in Fort Frances, Ontario have a new collective agreement.

Stephen Boon, CEP National Representative for Dryden, said, “we are pleased to have reached a solid, long-term deal covering our Forestry Members at Sonoco in Fort Frances.”

Workers voted just under 70% in favour of the deal.

The new contract is a 5 year agreement with a $500 lump sum payment in the first year, followed by 1.5%, 1.75%,  2%, and 2.5% annual increases in the final four years of the agreement.

Improvements in language and benefits were also achieved.

Sonoco provides paper cores for use in rolls of paper at Resolute Forest Products and other area paper mills.

Source: CEP