Corner Brook Pulp and Paper adds revenue sources to strengthen viability

Monday, 18 March 2024 07:00

By Tonya Organ

NL Hydro will buy energy from the company’s Deer Lake Power assets.

On Friday, government announced an agreement to help stabilize Corner Brook Pulp and Paper (CBPP) and the forestry industry during challenging conditions in the newsprint market. NL Hydro will buy energy from the company’s Deer Lake Power assets. CBPP has also committed to sell saw logs to the three large sawmills in line with operating plans submitted to the Department of Fisheries, Forestry, and Agriculture. These saw log sales are essential for the stability of the forest sector.

Kruger, the owner of Corner Brook Pulp and Paper issued a statement Friday night under the headline, “CORNER BROOK PULP AND PAPER IMPLEMENTS MEASURES TO ADD REVENUE SOURCES AND TO STRENGTHEN ITS VIABILITY” The statement said, “The agreement, which benefits both entities, will better position CBPP to face increasingly challenging conditions in the global newsprint market. Furthermore, a Kruger dedicated task force will work to identify viable projects to diversify CBPP’s production in the field of wood-based bioproducts. The goal is to add revenue sources to make operations more sustainable in the long term, while also unlocking Newfoundland and Labrador’s high forest potential.”

Meanwhile, CBPP is the only newsprint mill in the province and, according to Statistics Canada, contributed $49.9 million to the provincial GDP in 2020. CBPP operates two paper machines producing 240,000 tonnes annually with a sales value of ~$130 million and paper production directly employees about 305 workers.

To report an error, submit a news tip, or provide feedback, please e-mail news@bayfm.ca or call (709) 637-0183.

More from Local News

A man is dead after a dirt bike crash in Fortune last night

Evidence gathered at the scene suggests that the dirt bike struck the gravel shoulder of the road and departed the roadway.
An Ontario man is dead after a single vehicle collision near Forrester's Point

A pickup truck left the highway and came to rest on its roof. The driver and lone occupant of the vehicle, who was not wearing a seatbelt, died at the scene.
Canada's crime rate is up by 50%, Federal Conservative Leader Pierre Poilievre holds a news conference

Conservative Leader Pierre Poilievre held a news conference yesterday saying total crime is up 50 percent, sexual assaults are up 75 percent, violent firearms offences up by 116% and extortion is up 357 %.
Pasadena will host "The Main Street Market" tomorrow

Kelli Lannon says there will be a variety of vendors at tomorrow’s event with jewelry, purses, baked goods, wood crafts and more.
Corner Brook Disc Golf Club ranked best in NL

The group appreciates the recognition of the investments and work by the City of Corner Brook, the province, Disc Golf NL, Flickline Disc Golf, and the Corner Brook disc golf community to build, maintain, and improve such a fantastic course.