Two paper machines at a Nova Scotia mill are shutting down indefinitely as its parent company grapples with economic challenges and rising costs.
PORT HAWKESBURY, NS: Two paper machines at a Nova Scotia mill are shutting down indefinitely as its parent company grapples with economic challenges and rising costs.
Miamisburg, Ohio-based NewPage Corp. says its Port Hawkesbury mill, which makes newsprint, improved newsprint and supercalendered paper for the printing and publishing industries, has been unprofitable for more than a year.
In a statement, NewPage said the decision to stop operating both paper machines at the mill was based on several factors, including high utility and shipping costs.
It also cited unfavourable exchange rates between the US and Canadian dollars.
NewPage said it expects to fulfil some pre-existing orders for its supercalendered papers from its mill in Duluth, Minn., but does not produce newsprint from any other mill location so it will be unable to serve those customers during the downtime.
According to NewPage’s website, the mill opened in 1962 and employs 550 workers, including woodlands employees.
The machines will be shut down separately on Sept. 10 and Sept. 16.
NewPage said it will continue to review the situation and provide updates on the mill.
© 2011 The Canadian Press, Files from PLANT