- The Terrace Standard, Wednesday, February 15, 1995 Skeena Cell worried about losing Orenda LOSING WOOD it now buys from Orenda Forest Products will hurt Skeena Cellulose, says its president. Harry Papushka said the com- pany relies heavily on wood from Orenda to feed its Prince Rupert pulp mill. He was commenting on the pending purchase of Orenda by a company which wants to use the wood to re-open a closed new- Sprint mill at Gold River on Van- couver Island. Sawlogs are also bought which end up at Skeena Cellulose’s Carnaby mill, “It is a concern. There’s al- ready a heavy search on for fibre nowadays,’ said Papushka. ‘‘When we lose supply, we have to be concemed.”’ ; Skeena Cellulose has a contract to buy 100,000 ‘cubic metres of pulp wood a year from Orenda and an option’to buy another 100,000 cubic metres a year. That amounts to about eight per cent of the supply needed at Skeena Cellulose’s Prince Rupert pulp mill, As it is, Skeena Cellulose only has about one million cubic Metres under direct licence ‘0 feed its Rupert mill, The fibre market has been so tight Skeena Cellulose has barged up wood from Vancouver and has at times found itself with only two or three days worth of pulpwood on hand, Although Skeena Cellulose’s contract with Orenda has another two years to go, Papushka said any company has to be worried when there’s a potential supply change. Prince Rupert Skeena Cellulose officials say losing Orenda wood means the closure of its B miil and the loss of jobs. While the A mill could still op- erate, its costs would then be higher because it would assume all of the overhead required to run the operation. akkKK In itself the shipment of raw northern wood down south or across oceans isn’t new. The Queen Charlotte Islands has been a historical supplier of wood destined for southern mills. (The forest service has recog- nized this by placing the Char- lottes within the Vancouver Forest Region and not in the Prince Rupert Forest Region.) And large segments of the Kitimat Valley ended up down south in the 1960s, But a growing fibre shortage and the dependence by Skeena Cellulose on Orenda wood has made the situation more acute, There’s even a certain amount Orenda wood not enough to open newsprint mill RE-OPENING A closed Van- couver Island newsprint mill is going to require more wood than’li be available from Orenda Forest Products. That’s the prediction of pulp in- dustry watchers and officials fol- lowing news that a company wants to amalgamate with Orenda Forest,,,Products,. and, use, .that wood for the mill at. Gold River. : ,Orenda’s licence in the Stewart. area” ‘allows it to cut 342,000 cubic metres a year. About two- thirds is pulplog suitable for paper and the rest is sawlog. , But the Gold River newsprint ‘mill can consume up to 500,000 cubic metres of wood a year. ' “They must be sure there’s some other wood somewhere. (God knows where. [ assume these .people know that,”? said Council ‘of Forest Industry official Brian McCloy. He said the impacts of land use plans and the Forest Practices Code are rapidly reducing the an- nual amount of pulp available in the province. It’s not now unusual for com- panics to bring in pulp and sawlogs from Alaska and from other provinces. “The long term impact on fibre supply is not very good,” said McCloy. He also noted that Orenda still has a contract with Skeena Cel- Julose to supply up to 200,000. cubic metres of pulpwood a year. As it is, a kraft pulp mill at Gold River is pretty much using all available pulp fibre from the area and beyond, sald Norman Lord from Avenor Inc. It owns 31 per cent of a company which op-- crates the Gold River pulp mill. The newsprint mill in question closed in late 1993 after mount- ing debt and low newsprint prices became too much of a burden. Avenor also owns the newsprint mill in partnership with American newspaper companies. Avenor’s Lord said lack of fibre ali through 1994 frustrated efforts to open up again. “Fibre supply became a major issue a§ carly as the first quarter of 1994 and that continued,” said Norman Lord, Orenda Forest Products vice president Frank Foster said he isn’t aware of what plans the company’s proposed new owners have for the wood. “They’ve given us indications there will be some additional jobs of some kind but we don’t have any more details available,’’ said Foster, Foster even held aut hope the proposed new owners will con- sider Orenda’s plan to build a pulp and paper mill between Ter- trace and Kitimat. - *“There is a- fibre supply there and other assets and the assets are the project,”’ said Foster. **We don’t know what will hap- pen to the project at this point’’ Even should the Orenda wood end up at Gold River, past experi- ence there with wood from the Stewart area hasn’t been good. Union officials from Gold River and from Avenor Inc. ack- nowledged that the high volume of rot from wood in the Stewart area, some of which came from Orenda, caused problems. The experience is not what we would like it to have been, but I'd not want to make a judgment about it at this point,’’ said Avenor official Norman Lord, The newsprint mill uses a thermomechanical process requir- ing a fairly high quality of pulp log, That high quality comes in the form of longer. fibres produced from grinding chips. This is a different method than the chemical process at Skeena Cellulose’s Prince Rupert mill, There, wood is ‘‘cooked’’ to produce the raw material from which paper is made. The Skeena Cellulose process permits using lower quality pulp logs with higher degrees of rot. ee ion J of irony in the proposed Orenda sale, People in Gold River say too much wood from their area on mid-Vancouver Island is being sent to pulp and saw mills on the lower mainland, “Our own company, Pacific, sells off some of the really good fibre and exports it outside of this region,”’ said Mel Platz, president of Local 11 of the Pulp and Paperworkers of Canada in Gold River. Harry Papushka DOUBLE YOUR. 1994 RRSP TAX SAVINGS! The Working Oppartunity Fund is a tax assisted investment that brings together business, labour and government. Its portfolio consists of equity investments in small B.C. business only, treasury bills and ather investment grade securities. 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