The downturn in the Kraft pulp production industry has forced the Coast's largest employer to temporarily lay off 200 workers.
Howe Sound Pulp and Paper (HSPP) announced Monday they will be taking two weeks downtime in their Kraft pulp mill starting Nov. 17. Approximately 200 workers will be laid off for the duration of the curtailment.
According to HSPP, a further production curtailment of two weeks is expected over Christmas, starting on Dec. 22. The total tonnage HSPP is planning on taking out of the market is 30,000 tonnes. HSPP's newsprint mill will continue at full operation during the pulp reduction. During the past four weeks, the Kraft pulp market has taken a significant downturn in price and demand, and officials at HSPP said because of this they were forced to make the tough decision of limiting some of their operations.
"Though we anticipated some demand reduction this quarter, the magnitude of what has occurred was unexpected and has taken all producers by surprise," said HSPP president and CEO Mac Palmiere. "This was an extremely difficult decision, especially at this time of year. However, the export market to China has literally collapsed, both in price and volume." HSPP operates a Kraft pulp and newsprint mill at Port Mellon with annual production capacity of 400,000 tonnes of pulp and 230,000 tonnes of newsprint.
