Shock waves are still rippling through the Sunshine Coast after last week’s news that Paper Excellence is closing the paper division at its Howe Sound Mill.
One industry analyst says with paper producers experiencing lower prices and a tight market closures were expected, but not many saw one of the first coming at HSPP.
Kevin Mason is with Gibsons-based ERA Forest Products Research.
Mason says in the short term at least it’s possible Catalyst Paper, which has mills in Powell River, Crofton and Port Alberni could benefit by picking up some of Howe Sound’s paper customers, and through more fibre supply (the raw material for pulp and paper) being available.
He also says the other factor in the closure – water supply – is becoming an industry wide issue.
Around 180 people stand to lose their jobs, and local governments on the Sunshine Coast are having a conference call with the Jobs Ministry this week to talk about the impact.
A “Worker Transition Committee” is also being set up.
