Bowater plans 2-week shut at Thunder Bay

Pulp & Paper, Jul 2005

Bowater said it will idle its newsprint operations at Thunder Bay, Ont., for a minimum of two weeks beginning July 1. A company official said the mill's 545,000-mtpy market pulp business will continue to operate. Between 400 and 450 employees will be affected.

Total newsprint capacity for the Thunder Bay mill is about 1,200 mtpd, so at least 17,000 tonnes of newsprint production will be curtailed.

Company officials blamed the high cost of wood and electricity for the shutdown, but market sources said it was likely also intended to shore up recent newsprint price increases and send a message to labor unions ahead of contract negotiations with the Communications, Energy and, Paperworkers Union (CEP).

In an April conference call, Bowater CEO Arnold M. Nemirow outlined a proposal to convert Thunder Bay's 250,000-mtpy No. 5 paper machine into a 240,000-mtpy ultra lightweight coated paper machine. He said the project could take up to two years, but said the $200 million in capital expenditures it would cost did not have board approval.

The following month the company said it would go ahead with an $80 million project to convert approximately 200,000 tonnes of annual newsprint production at its Calhoun, Tenn., mill to higher-margin specialty grades, but made no mention of Thunder Bay.