Howe Sound Pulp and Paper announces kraft pulp production curtailment

Nov 10, 2008. /Lesprom.com/. Howe Sound Pulp and Paper (HSPP) announced that it will be taking two weeks downtime in its kraft pulp mill starting on November 17. A further production curtailment of two weeks is expected over Christmas, starting on December 22. The total tonnage HSPP is planning on taking out of the market is 30,000 tonnes. HSPP’s newsprint mil will continue at full operation during the pulp curtailment. Over the past four weeks the kraft pulp market has taken a significant downturn in price and demand. “Though we anticipated some demand reduction this quarter, the magnitude of what has occurred was unexpected and taken all producers by surprise”, says HSPP President and CEO Mac Palmiere. Unfortunately, approximately 200 workers will be laid off for the duration of the curtailment. “This was an extremely difficult decision, especially at this time of year”, says Palmiere. “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, BC with annual production capacity of 400,000 tonnes of pulp and 230,000 tonnes of newsprint. HSPP is equally owned by Vancouver based Canfor Corporation and Oji Paper Co. Ltd. of Tokyo.