Northwestern Ontario sawmill starts second shift, adds 45 jobs

TORONTO (Scrap Monster): Kenora Forest Products has announced addition of a second shift at its planer and sawmill. This brings the mill into full operation. According to the company, the addition of the new shift has added 45 new jobs. The facility, shut in 2008, had restarted operations with a single shift in early-February this year, after undergoing prolonged up gradation and expansion works, which lasted over six months. The addition of second shift will provide financial stability to many families, in addition to contributing significantly to the city’s economy.

According to the agreement signed between Unifor and Kenora Forest Products management, it was decided that local aboriginal members should benefit by the reopening of the mill. Unifor national representative Stephen Boon noted that local indigenous member constitute over 50% of the total workforce at the mill. More aboriginal members are employed in related operations including log-harvesting. Boon also stated that the mill has now turned out to be one of the highest paying mills in eastern Canada, with hourly wages of top trades expected to reach $41.79 by the end of six-year contract, which comes in 2020.

The Unifor chief stated that the entire sawmill sector in the country is concerned over the uncertainties with regards to renewal of the softwood lumber deal with the US. Incidentally, nearly 80% of the Kenora’s mill output is shipped to the US. With American producers expected to initiate trade cases against lumber imports from Canada, the company will have to find new markets for its products. The building code changes in Ontario are expected to improve prospects of domestic sales.

The mill was shuttered in April 2008, unable to withstand the crash of US housing market, leading to 105 employee layoffs. However, the company had managed to increase its Crown fibre allocation through the provincial government’s wood supply competition with the promise that the mill would restart once economic conditions improved. The company had also received government support in the form of a $3-million interest free loan repayable over 10 years through FedNor's Targeting Manufacturing Initiative.

The company had undertaken major upgrades at the mill. It made multi-million dollar investment at the mill facility in installation of an additional saw line for expanded lumber production, additions to existing buildings as well as other modernization features. It had also reached a six-year contract with Unifor for unionized workers in the mill.

​​​Kenora Forest Products Ltd. is a lumber mill widely recognized among industry experts for its exceptionally high quality wood products. Only 220 kms from Winnipeg, Manitoba, the mill is ideally located and situated on one of the most beautiful and scenic properties on Lake of the Woods in Kenora, Ontario. Owned by Prendiville Industries Ltd., Kenora Forest Products has a capacity of nearly 130 million board feet of lumber per annum. It supplies wide variety of grades to the building industry throughout North America.