Nfld. & Labrador

Corner Brook Pulp and Paper takes a hit with new U.S. newsprint duties

A new U.S. duty imposed on newsprint will hit Kruger, the parent company of Corner Brook Pulp and Paper, particularly hard.

Kruger, the parent company of Corner Brook Pulp and Paper, faces a 9.93 per cent duty for U.S. exports

Kruger, the parent company of Corner Brook Pulp and Paper, was hit particularly hard. (CBC)

A new duty imposed by the United States is expected to have a big impact in Corner Brook.

A ruling delivered late Tuesday night by the U.S. Department of Commerce imposed a duty on all Canadian newsprint exported to the U.S.

Kruger, the parent company of Corner Brook Pulp and Paper, was hit hardest by the decision, with a preliminary tariff of 9.93 per cent now imposed on all uncoated groundwood paper, like newsprint, sold to the U.S.

About half of the newsprint produced by the mill in Corner Brook is exported to the U.S., totalling about 120,000 tonnes a year. At going market rates, that newsprint is worth about $84 million.

Ball 'disappointed'

In a written statement sent late Tuesday night, Premier Dwight Ball said he was "disappointed" by the decision.

"As a government, we have worked vigorously to advocate for local businesses and workers, including Corner Brook Pulp and Paper, against the increased protectionist environment that exists in the United States."

Tuesday's ruling is preliminary and the duties imposed could change before a final ruling. That's expected to be issued later this year.