Paper Excellence Canada, after failing to re-start paper operations at a Vancouver Island mill, is returning millions of dollars of funding to the provincial and federal government.
In early 2023, Paper Excellence announced that it would be investing nearly $50 million to upgrade paper operations at the Catalyst Crofton mill, re-start the paper machine and put employees back to work. That didnsa国际传媒檛 happen, and a year later, the company announced the indefinite curtailment of paper operations in Crofton.
Now, Paper Excellence has returned $4.5 million in provincial funding that was to go toward re-tooling the paper line, and the company said in a statement that it is sa国际传媒渨orking through the administrative processsa国际传媒 of returning the federal funding, too, previously announced as $14.3 million.
Paper Excellence said as far as long-term plans for paper operations at the Crofton mill, there is no change since the indefinite curtailment was announced. The millsa国际传媒檚 pulp operations, supported by approximately 400 employees, continue production, and sa国际传媒渢he Crofton team will focus on making the remaining pulp operations cost competitive and aligned with our overall business strategies and direction,sa国际传媒 the company noted.
A spokesperson from the B.C. ministry of jobs, economic development and innovation confirmed in an e-mail that the $4.5 million has been returned.
sa国际传媒淥ur thoughts are with the approximately 75 workers and their families in Crofton, who have been impacted by Paper Excellencesa国际传媒檚 January 2024 decision to indefinitely curtail the paper line at Crofton while maintaining their pulp operations sa国际传媒 we share their disappointment,sa国际传媒 the statement noted. sa国际传媒淚t reinforces that we need to take action to support people and forestry communities that have been impacted by poor market conditions.sa国际传媒
Paper Excellence stated earlier this year that market dynamics, inflationary pressures on raw materials, energy costs and lack of domestic fibre supply have increased operating costs, and sa国际传媒渢hese pressures have materially impacted the current and future financial viability of the paper operation.sa国际传媒
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