Idled Corner Brook paper machine will stay that way, Kruger says
Last Updated: Thursday, May 14, 2009 | 1:42 PM NT
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One of the papermaking machines at Corner Brook Pulp and Paper will remained idled indefinitely. (CBC)One of the papermaking machines that was idled for eight weeks this spring at the only newsprint mill in Newfoundland and Labrador will remain inactive indefinitely, the owner said Thursday.
The No. 4 machine at Corner Brook Pulp and Paper was to have restarted this weekend, following a two-month shutdown that Montreal-based Kruger Inc. ordered to cope with a slumping demand from newspaper publishers.
But Kruger says market conditions remain so weak, there is no justification for restarting the machine.
"It will be for an indefinite period," said Jean Majeau, senior vice-president for corporate affairs and communications.
"Of course we re-evaluate the situation on a monthly basis. The market conditions are not getting better. For the moment, it's impossible for us to have sufficient orders to fulfill the production capacity [and] profitability of the paper machine."
About 30 workers were laid off in March, with the expectation they would be later rehired.
Majeau said there will not be any additional layoffs at the mill, although there will be little work for temporary employees and students who usually fill in at the mill over the summer months.
Corner Brook Pulp and Paper is the only newsprint manufacturer remaining in the province. In March, AbitibiBowater permanently closed a century-old mill in Grand Falls-Windsor. In 2005, it shut down another mill, in Stephenville.
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