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NEWS RELEASE · 5th April 2010
CEP 298
The Eurocan Viability Group hired Pöyry Forest Industry Consulting Inc. to study and report on the viability of the Eurocan Pulp and Paper mill in Kitimat, British Columbia.

The Eurocan mill produced liner board and sackkraft papers from virgin softwood pulp with a combined annual capacity of approximately 500,000 tonnes. The mill had employed 535 persons until West Fraser closed the facility at the end of January, 2010.

The Eurocan Viability Group is composed of:

* The District of Kitimat
* Local 298 of the Communications, Energy and Paperworkers Union(CEP)
* Local 1127 of the Communications, Energy and Papermakers Union(CEP)
* Envision Financial Kitimat
* Kitimat Chamber of Commerce

Pöyry has determined that the mill could be viability again, although in a different form. The mill could manufacture sack Kraft paper (used to package basic material, such as building and construction materials, fertilizers and chemicals, animal feed, pet food) and 270 jobs could return to the mill.

First, Pöyry recommends bringing three to four major tenure holders in the region into a partnership with the ‘renewed’ Eurocan.

Then, Pöyry recommends presenting West Fraser with the new stakeholders and an outline of a plan going forward in order to get their cooperation.

Funding will need to be secured for development, including for the development of a 'bankable' business plan. An important element of the plan will be fiber supply which necessitates active participation of regional tenure holders in development of the plan.

The report will be available soon from the District of Kitimat web site -