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Tembec said Thursday it is shutting down its Skookumchuck mill on June 29, citing the U.S. black liquor subsidy as a prime cause.
The temporary closure comes while Ottawa considers, but has not acted on, a $1-billion aid package that could assist mills like Skookumchuck that have a green energy component to them.
Industry leaders say aid is needed immediately as U.S. competitors are now receiving more than $100 million a week from Washington.
The mill is the first B.C. casualty of the black liquor subsidy, which cut production costs by up to 60 per cent for American mills. They are reopening while Canadian mills close.
Located north of Kimberley in eastern B.C., the Skookumchuck mill employs 285 people and is already creating enough green energy by burning wood waste in its boiler to provide BC Hydro with power to supply 23,000 homes.
Read the full article here.
The temporary closure comes while Ottawa considers, but has not acted on, a $1-billion aid package that could assist mills like Skookumchuck that have a green energy component to them.
Industry leaders say aid is needed immediately as U.S. competitors are now receiving more than $100 million a week from Washington.
The mill is the first B.C. casualty of the black liquor subsidy, which cut production costs by up to 60 per cent for American mills. They are reopening while Canadian mills close.
Located north of Kimberley in eastern B.C., the Skookumchuck mill employs 285 people and is already creating enough green energy by burning wood waste in its boiler to provide BC Hydro with power to supply 23,000 homes.
Read the full article here.