Fort mill jobs slashed as machines are idled

By Duane Hicks
Fort Frances Times

Resolute Forest Products dropped a bombshell on Fort Frances yesterday with word its kraft mill and #5 paper machine here will be idled indefinitely come month’s end.
The move means 239 employees will be laid off.
Paper machine #7 will continue to operate, with about 200 employees staying on at the mill.
“The markets for these products are challenging and are expected to remain so,” Resolute president and CEO Richard Garneau said in a statement issued mid-afternoon yesterday.
“The kraft mill situation is particularly difficult given Fort Frances’ operating configuration, and the recent decision by a key customer to stop consuming the pulp supplied by Resolute to its mill,” he added.
“Our kraft mill’s drying capacity is limited to about 40 percent of its production capacity, making it impossible to continue operating the mill in a profitable manner,” noted Garneau.
Resolute did say it is exploring alternative product possibilities for its Fort Frances pulp mill, which will be idled in a manner that will protect the equipment.
The idling of #5 paper machine, meanwhile, is driven by a decrease in consumption as well as the high value of the Canadian dollar, the company said.
“We will monitor market conditions closely and work with key stakeholders to explore ways to improve the mill’s cost position,” said Garneau.
The running down of fibre inventories and the orderly shutdown of the kraft mill is expected to be completed by month’s end. Paper machine #5 also will continue to operate until late November.
“I don’t know how it’s going to affect us all yet,” admitted Larry Kellar, president of Communications, Energy and Paperworkers Local 92.
“Anytime we idle, it’s a scary feeling,” Kellar said. “They’ve idled lots of things, but eventually they’re not idled anymore—they’re shut [down].
“And that’s the scary part about it.
“I know they’re still trying to work on plans, but . . . I don’t know what to say. It’s a tough situation to be put in for everybody,” he lamented.
While some mill workers will wait around to see if the kraft mill and paper machine #5 start up again, many will not. Kellar speculated CEP Local 92 might lose half its members.
Kellar believes it is vital for the mill to find a market for selling kraft. As reported last month, the Boise Inc. paper mill in International Falls stopped regular pulp purchases from the Fort Frances mill.
“Truth be told, if they can’t bounce back from this, this mill will not survive with one machine, not forever,” warned Kellar, adding the paper machines here are smaller than at many other mills.
“Personally, unless they find a solution to the kraft mill, I am not sure whether I’d say there’s much hope because I’d be kinda lying to myself if I said that,” he later noted.