AV Nackawic pulp mill contemplates closure
Nov 11, 2008. /Lesprom.com/. The AV Nackawic Inc. mill in central New Brunswick, which produces dissolving pulp used to make rayon, will decide November 20 whether to halt operation for four to six weeks starting next month.
Nov 11, 2008. /Lesprom.com/. The AV Nackawic Inc. mill in central New Brunswick, which produces dissolving pulp used to make rayon, will decide November 20 whether to halt operation for four to six weeks starting next month. According to a report by the Daily Gleaner, a poor economy and excess inventories are behind the possible closure.
“The union executive met with the company and (we’re told there’s) an 80 to 90% possibility of a four to six week shutdown starting in December,” the Gleaner reported Mark Cloutier, President of the Canadian Auto Workers Local 210 as saying. The company expects to render a decision next week.
While the majority of workers would be temporarily laid off if the closure goes ahead, the Gleaner confirmed some would retain their positions in order to keep the mill’s boiler up and running.
Despite challenging market conditions, mill management remains confident about the operation’s long-term viability.
“We put a lot of money into this to make it a world-class operation so I don’t hold any concern about the long-term,” the Daily Gleaner reported AV Group President and CEO Peter Vinall as saying. “This is a short-term market issue.”
AV Nackawic is a part of group of companies (AV Group), which are focused on producing specialty pulp products to service the textile and paper industry.