The Government of Newfoundland and Labrador announced today that it has signed an agreement to purchase additional power to further support the electricity grid and help stabilize Corner Brook Pulp and Paper Limited (CBPP), its workers and the forestry industry during difficult conditions in the global newsprint market as the company explores diversification opportunities.
The six-month deal includes Newfoundland and Labrador Hydro's (Hydro) purchase of excess green energy from CBPP's Deer Lake Power assets. In turn, CBPP will work to identify new revenue streams from viable wood-based bioproduct projects to unlock Newfoundland and Labrador's high forestry potential while further stabilizing the plant's sustainability and future. .
A new agreement between CBPP and Hydro for power generated from CBPP's existing power generation facilities will give Hydro flexibility to draw on when necessary. There is no impact on the taxpayer as a result of the agreement.
In addition, the Provincial Council and the CBPP have reached an agreement on security, staffing and diversification. CBPP has agreed to offer sawn logs for sale to the three large sawmills in accordance with CBPP's annual operating plans submitted to the Department of Fisheries, Forestry and Agriculture. These sawlog sales are essential to the stability of the forestry sector.
The Provincial Government remains optimistic about the forestry industry and continues to hold discussions with CBPP.
CBPP is the province's only newsprint mill and, according to Statistics Canada, contributed $49.9 million to the provincial GDP in 2020. CBPP operates two paper machines producing 240,000 tonnes per year with a sales value of ~ 130 million dollars and paper production directly employs about 305 workers.
The CBPP consumes around 450,000 cubic meters of wood per year and employs approximately 80 additional people in forest management and harvesting. The sale of sawlogs to sawmills supports the timber sector and generates income for CBPP.
Quotes
โOur government supports the sustainability of Corner Brook Pulp and Paper Limited and its role in the Province's integrated forestry sector. โWe will continue to work together to secure the future of our forestry industry for the benefit of residents and communities across the Western Region and across our province.โ
Honorable Elvis Without Love
Minister of Fisheries, Forestry and Agriculture
โWe understand that Corner Brook Pulp and Paper Limited has faced challenges due to the difficult business environment in the newsprint sector. โWe encourage the company to explore options to complement its product line so it can continue to contribute to the forestry industry in Newfoundland and Labrador.โ
Hon Siobhan Coady
Finance Minister
โThrough this agreement, Newfoundland and Labrador Hydro will increase its excess energy reserves, which is especially beneficial during the winter months. โThis will help sustain CBPP operations and employment as the company explores long-term sustainability opportunities for factory and forestry industry employees.โ
Honorable Andrew Parsons, Kansas City
Minister of Industry, Energy and Technology
โCorner Brook Pulp and Paper Limited plays an important role in my constituency and, as the area's MHA, I am pleased to be part of a government that recognizes the importance of the forestry industry and the hard-working people who depend on it. โI remain committed to supporting workers as the company adapts to these difficult market conditions.โ
Hon Gerry Byrne
Minister for Immigration, Population Growth and Skills and Corner Brook MHA
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2024 03 15
2:05 p.m.
