Canada's Sole Unbleached Linerboard Mill Set to Close

---

Researched by Industrial Info Resources (Sugar Land, Texas)--West Fraser Timber Company Limited (TSX:WFT) (Vancouver, British Columbia) has announced plans to cease operations at a pulp and linerboard mill in Kitimat, British Columbia, by the end of January 2010. Located in the northwestern region of the province, the Kitimat mill is the only unbleached linerboard mill in operation in Canada.

The mill produces about 450,000 tons per year of linerboard and kraft paper, and is a small player in the market. The mill has long struggled with high input cost factors, but recent external forces made it difficult to project the long-term viability of the mill. Since January 2009, the Kitimat mill experienced a drop of approximately 40% in the net selling price of its products as a direct result of the global economic downturn. Problems were exacerbated by drastic increases in the Canadian dollar and fierce competition from low-cost producers in the U.S. and other countries.

Operations at the Kitimat site are comprised of a chip-handling system; a fiberline with two continuous digesters and a chemical-recovery plant; a paper mill with two paper machines; and a finishing plant. Prior to the announcement, the company was developing plans to install a 10-MW, low-pressure condensing turbine generator and a new electrostatic precipitator, which were immediately canceled.

West Fraser has not disclosed whether it plans to dismantle the operations or sell the mill. However, there has been some speculation that the company might allow interested parties to pursue purchasing the mill before it closes.

View Plant Profile - 1029093
View Project Report - 57000997 57000998

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.