Tag Archives: Pine Falls

A letter from the ForestTalk inbox:

There is a big hole in my heart and I can’t get the mill closer off my mind. I worked at the Pine Falls mill for 32 years. The things that bother me the most is how this process was done and why it happened this way.

1. Tembec was totally the worst company to come in and buy the mill off the employees. They literally destroyed the relationship between the communities of Powerview and Pine Falls Manitoba.
2. On September 2nd of 2009 Tembec shut the doors and totally blamed it on wages and market conditions. We all know that this is not true.
3. The Union had asked Tembec to allow the boiler house employees to go in and run the boilers for heating the mill in the winter while the negotiations were going on. Tembec refused and hired a propane company hook up some heaters. That was no were near enough heat and there for the floors froze and frost heaved the floors making this impossible to ever start up again.
4. I would like to know the statistics on how long after initial close, it took other mill Owner’s to dismantle the property. Tembec made this mill impossible to start up within weeks of the shutdown to ever start up again.
5. I am upset with the Manitoba government for not stepping in and throwing Tembec out of Manitoba. Just like Newfoundland did to Abitibi Price.
6. How was the Manitoba government supposed to know what was going on. They probably felt that the market conditions was to blame. I am part to blame because I know that we had orders. In August of 09 we ran 3 special order to try and get in the press rooms of Rocky Mountain and Minneapolis, but I can’t remember the third press room. As I recall we did very well and was awarded those order. The next week we were shutdown and all of our orders went to Kapaskasing Ont.
7. We had 3 men in Tembec’s organization in the Sales and Marketing Department. Out of these three men, not one came forward and said that we need to get this mill back and continue making paper. Tembec still has all but one still on the payroll. You have to ask yourself, did they do right by letting their birthplace die.
8. The mill Manager at the time, was born and raised the Pine Falls. He is now Assistant mill Manager in Kapaskasing Ont. He was the one that was in the biggest hurry to put the recking ball to the mill. ( another hometown boy )
9. In the end of all of this, myself and 75% of the employees lost 300 plus thousand dollars in pension.
10. If I can salvage anything out of this is, please evaluate all situations and don’t rely on somebody else’s word. Make the Government accountable.

Denis Cyr
Stock prep-beater engineer

Tembec announced today that Pine Falls Development Corporation (PFDC) has acquired the Tembec Pine Falls, Manitoba mill property and assets. PFDC is an investment project of NRI Global Inc., a company that acquires and manages assets throughout North America.

The site is being sold for nominal net proceeds and the transaction will not impact Tembec’s financial results as its carrying value had been reduced when the newsprint mill located on site was permanently idled.

The Tembec Pine Falls facility ceased production in September 2009. Permanent closure was announced in 2010. Tembec will transfer the site to PFDC who has finalized a plan to remediate the site in an approach that allows for investment recovery, site redevelopment and assured environmental closure.

NRI Global is a private investment firm that acquires distressed or impaired assets. NRI Global has offices in Toronto, Ontario and Buffalo, New York. The firm specializes in pulp and paper, energy, and resource transactions in North America. NRI Global and its subsidiary companies have operational expertise in finance, environmental remediation, site redevelopment, industrial services and trade.

For more information about PFDC, visit www.pinefallsdevelopment.com.

Source: Tembec

It has been two years since the Pine Falls Tembec paper mill in Manitoba made paper.

On the Labour Day weekend in 2009, Tembec locked out its workers after they rejected the company’s offer of cuts to their wages, pensions, and benefits.

A year later, in 2010, the mill officially closed its doors and as many as 300 workers were out of a job.

Since then, the amalgamated town of Powerview-Pine Falls has carried on. At least a dozen workers, mostly young families, moved away, but the population hasn’t dropped by more than about 20.

Some people left for jobs in the oilpatch, and a number of workers have retired. Others are working contract jobs elsewhere in the province, while some are commuting longer distances to work in nearby towns.

The gold industry has treated the town and its people well. San Gold Corp. has hired nearly 80 former mill employees to work in its Bissett Gold Mine, and there are rumours the mine could be about to hire 100 more.

The jobs in the Bissett Gold Mine are two hours away from Powerview-Pine Falls. The workers work two weeks straight and live in temporary housing, and then return home for two weeks off.

Housing prices are down about 25% in town, but houses are still selling.

Next year the town will lose about half of its tax base. Tembec pays the town about $1 million annually in taxes, but next year will be the first year they will not be paying. Residential property rates may have to increase as much as 50% next year in Pine Falls to cover the cost of a storm-sewer system and subsequent road resurfacing.

Read more:
Mill closure can’t kill one-industry town – Mines, AECL keep former Tembec workers employed (Winnipeg Free Press)

Tembec has posted a net earning of $2 million in its latest quarter on sales of $444 million.

These financial results can be compared to a net loss of $17 million in the same quarter a year ago.

For the fiscal year ended September 25, 2010, consolidated sales were $1.9 billion, up from $1.8 billion in the prior year. The Company generated net earnings of $52 million or $0.52 per share compared to a net loss of $214 million or $2.14 per share in fiscal 2009.

Tembec’s Outlook
While the September quarterly EBITDA (earnings before depreciation, amortization and other specific or non-recurring items) of $36 million was a decline from the prior quarter, it did exceed the company’s expectations.

The sale of the two French pulp mills, the impact of the fire at the Chetwynd, BC pulp mill and the extensive maintenance downtime in the September quarter were all known items at the time the prior quarter results were published.

As anticipated, lumber pricing remains somewhat volatile as relatively weak markets are balanced against low supply chain inventories. The emergence of China as a growing consumer of Western Canadian lumber is an encouraging development. A significant improvement in U.S. housing starts will be required to support more sustained lumber demand and prices in the medium and longer term. Paper pulp markets, which had good market fundamentals, surged after the earthquake in Chile and its impact on global paper pulp supply. Now that supply disruptions have been resolved, prices are declining, with hardwood pulp under more pressure than softwood pulp. However, good demand fundamentals should ensure that the prices will remain attractive for paper pulp producers.

Specialty and dissolving pulp markets are enjoying very favourable market fundamentals. Strong prices are expected to continue in the upcoming quarters. The results of the paper business should show better margins, driven by higher selling prices for newsprint and coated paperboard. While the recent announcement of the permanent closure of the Pine Falls, Manitoba newsprint mill did negatively impact the September quarter financial results, it should lead to better performance for the paper segment in future periods. The successful refinancing and reduction of the company’s term debt represented an important milestone and was indicative of investor support for the asset repositioning that has been ongoing over the last several years.

Tembec feels they are well positioned to improve the quality and efficiency of its asset base and will be focused on this area in the upcoming fiscal year.

Read full release:
Tembec reports financial results for its fourth quarter and year ended September 26, 2010 (Tembec)

Tembec has announced the permanent closure of its newsprint mill located in Pine Falls, Manitoba.

The mill had been indefinitely idled due to a labour dispute on September 1, 2009. After examining a full range of options, Tembec initiated a sales process for the mill in early January 2010. This sales process has proved unsuccessful. After a thorough analysis of the situation, Tembec concluded that the permanent closure of the facility was the only viable option. Approximately 230 employees will be affected.

“Although not an easy decision to make, the structural decline of the newsprint market and the cost structure of the mill prompted such a decision,” said Chris Black, Tembec’s Executive Vice President and President, Paper Group. “The Company intends to act in a manner that will ensure that employees receive their severance pay in accordance with the collective agreement.”

As a result of this announcement, a net charge of approximately $8 million related to the closure will be recorded in the quarter ending September 25, 2010.

Source: Tembec

The group of employees that was interested in buying the idled Pine Falls, Manitoba paper mill, from Tembec, have decided not to proceed with an offer.

The province of Manitoba announced today that they will continue to work with the people in the Powerview-Pine Falls region to explore new economic possibilities.

“This is a difficult time for the former Tembec workers, their families and the buyout group who have worked so long to preserve the mill and the jobs that are critical to the town,” Manitoba’s Labour and Immigration Minister Jennifer Howard said. “I commend the extensive efforts and diligence undertaken by the buyout group as it explored the financial viability of purchasing the mill from Tembec.”

Although the group decided that purchasing and operating the mill would not be a viable business, they did say that there is valuable in the forest resources in the region.

Tembec idled this mill last September after locking out about 250 workers during labour negotiations. Tembec said the mill would be permanently closed if a buyer is not found.

J.P. Bradette, a former Tembec executive, was also interested in buying the mill. Bradette said he would be able to keep 200 people employed, but he did not gain the support of the United Steelworkers union who said his plan called for deep wage cuts and layoffs.

Read more:
Province working with Powerview-Pine FAlls to develop new economic initiatives – Buyout Group Commended for Due Diligence in Exploring Possible Purchase of Tembec Paper Mill: Howard (Province of Manitoba)
Pine Falls mill bid dead – Manitoba government pledges ongoing support to help former employees (CBC)

A group of former workers of the idled Tembec paper mill in Pine Falls, Manitoba are closing in on a deal to take over the mill.

Tembec wants a deal as soon as possible. The employees and leaders of the community are still waiting to see the results of a feasibility study on the viability of the purchasing the plant. That report is expected this week.

Cam Sokoloski, a local union leader whose members form part of the buyout group, along with former management employees, said he’s optimistic an agreement can be reached.

“Tembec wants us to get the deal done, and we’re doing everything we can to facilitate Tembec’s request to push ahead,” he said recently.

J.P. Bradette, a former Tembec executive, is also leading a group interested in buying the plant. He has said his offer is contingent on lowering labour costs, and unionized workers have refused to hitch their wagon to him — even though employees would be given shares in the company, under his plan.

Source:
Workers closing in on deal to buy idle Pine Falls mill (Winnipeg Free Press)

The workers of the idled Tembec newsprint mill in Pine Falls, Manitoba have refused to support a former employee’s bid to buy the mill.

On January 14th, J.P. Bradette, former Tembec sales executive, outlined his purchase plan at a meeting in Pine Falls.

Bradette is willing to offer employees significant ownership in the new company. He would create union jobs for 180 people, plus 20 staff positions. Bradette believes, if his bid is successful, the mill could be making paper by July 1.

The employees said Bradette’s plans call for cuts to production costs by reducing wages and implementing layoffs. Cam Sokoloski, president of the United Steelworkers, said the proposed cuts were too deep.

Sokoloski said the union is looking to make an offer of its own with support from the nearby Sagkeeng First Nation.

Letters of intent are due by Monday.

Source:
Workers balk at bid for Pine Falls mill (CBC)

Now that the lock out has been declared over at Tembec‘s Pine Falls paper mill, layoff notices are on their way to the workers this week.

Once a worker receives their layoff notice, they are able to claim Employment Insurance benefits.

The employees are also enlisting the aid of the Community Unemployed Help Centre in Winnipeg to try to persuade Ottawa to pay them EI benefits retroactively to Sept. 1, when the lockout began.

Last week, the Manitoba Labour Board ended the lockout after agreeing to a union application for binding arbitration in the dispute. That forced the company to either reopen the plant or issue layoff notices.

Tembec announced during the lockout that it was putting the mill up for sale and had no intention of reopening it.

Source:
Mill workers getting layoff notices, lobbying for retroactive EI benefits (Winnipeg Free Press)

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)