The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.
RESOLUTE Forest Products has made two major announcements in Northwestern Ontario in recent days. The company is idling a kraft mill and paper machine at its pulp and paper plant in Fort Frances, due to what it calls challenging market conditions.
The Montreal-based forestry company said it is closing the mill indefinitely as the market for specialty printing papers is expected to remain tenuous. About 239 employees will be affected.
Within days, Resolute announced plans to build an industrial wood pellet plant in Thunder Bay that will turn residual material into a source of renewable energy. The company said construction of the $10-million plant is expected to begin shortly and should be completed in 2014. It will hire 24 new employees.
Herein lies the changing nature of forestry. One market is fading just as another emerges. But let us not assume paper is a thing of the past. And let us not count on burning yet more fossil fuels as the answer to our energy needs.
Fort Frances is complicated by plant limitations and the decision by its main kraft pulp customer in the U.S. to buy elsewhere at less cost. Here again the Canadian dollar’s high value hurts Canadian exporters.