Ottawa

Outaouais flooring company stops logging, lays off 165 people

Lauzon Planchers de bois exclusifs blames the temporary closure of a nearby paper mill.

Lauzon blames troubles with nearby paper mill

The Lauzon plant in Papineauville, Que., in 2011. (Google Street View)

A western Quebec hardwood flooring company is no longer logging and laying off 165 people, blaming the closure of a nearby paper mill.

Lauzon Planchers de bois exclusifs in Papineauville, Que., announced Friday it was shutting down its logging operations because it sold wood chips to Fortress in Thurso, Que., which closed temporarily in October.

Fortress had blamed the ongoing trade dispute between the United States and China, as well as the weakening of China's domestic demand for textiles and clothing, for its closure.

The next day, the Quebec government announced it would give the paper mill a maximum $8 million loan to help it find a strategic partner to reopen by the end of this month.

Lauzon said all of its operations will close by Nov. 30.

In its statement, Lauzon did not say whether logging would restart if and when Fortress resumes its activities.

The company also said new Quebec forestry rules had increased its costs.

Papineauville is approximately 65 kilometres northeast of Ottawa.

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