Port Mellon mill to permanently shut paper operations

VANCOUVER (Scrap Monster):  Howe Sound Pulp and Paper (HSPP) has announced permanent closure of paper production activities at its Port Mellon pulp and paper mill in the BC province. The decision was announced Thursday by Paper Excellence- the parent company that owns the mill.

The closure will reduce the total workforce at the mill by nearly one-third. It will lead to approximately 180 job cuts. Nearly 140 unionized workers and 40 salaried staff at the Port Mellon mill are likely to lose jobs. The announcement by Paper Excellence states that the closure will be effective immediately. However, affected employees will receive regular pay for 12 weeks and severance benefits thereafter. Both unionized and salaried employees will also be offered a transfer option to Paper Excellence’s other mills in BC or other locations including Nova Scotia and Saskatchewan.

Following the closure of paper production activities, the mill will have 335 employees, mostly engaged in kraft pulp mill operations. According to company spokesperson, rising water supply concerns have forced them to shut paper production activities at the mill. In addition, the sharp decline in newsprint paper demand and falling prices were also other motivating factors that led to the closure. HSPP believes that the closure will help the company to stretch its water supplies so that kraft mill and power generating business could be run without intermittent closures.

Paper Excellence ruled out any further job loss at the Port Mellon mill in the immediate future.

Howe Sound Pulp and Paper is one of the finest, most efficient paper and kraft pulp producers in the world. The company had undergone a $1.3 billion modernization and expansion project in the 1990s, which had transformed the mill into a leading paper and kraft mill in the entire North American region.