Paper Excellence announced the permanent closure of the Mackenzie Pulp Mill located in Mackenzie, British Columbia, Canada. Production at the mill was originally curtailed in June 2020 due to market impacts caused by COVID-19 and lack of local economic fibre.
Since acquiring the Mackenzie mill in 2010, Paper Excellence has invested more than $360 million in the facility. However, despite these investments the facility’s small production capacity and the ongoing lack of local economic fibre meant the mill could not be globally competitive.
The pulp and paper sector is essential to a healthy and sustainable forest economy and Paper Excellence continues to believe in its long-term investments in British Columbia and elsewhere in Canada. To that end, Paper Excellence is restarting one of the paper machines in its Powell River mill in early May, investing with and establishing jointly beneficial partnerships with First Nations, and making a $13 million capital investment in the Port Alberni facility to diversify into higher-value markets. Furthermore, Paper Excellence is working towards making a significant capital investment in its Crofton facility and restarting its facility in Prince Albert, Saskatchewan.
Where possible, Mackenzie employees have been relocated to other Paper Excellence facilities across Canada. Meanwhile, the terms of the collective agreement with UNIFOR Local 1092 will be respected and severance payments made.
Paper Excellence is also committed to the ongoing protection of the receiving environment. Gaseous, liquid and solid chemicals as well as residues have been safely removed from the Mackenzie mill site. Currently, a small team of employees is providing around the clock monitoring while the development of a long-term remediation plan begins and the company explores ways to repurpose the facility in the future.
Paper Excellence is a diversified manufacturer of pulp and specialty, printing, writing, and packaging papers.
