REPORTING · 21st July 2010
IT'S TIME FOR THAT KITIMAT CHRISTMAS IN JULY MIRACLE
On the 15th of July the final deadline for the purchase of the Eurocan Mill was reached.
“We announced the shut down of Eurocan almost nine months ago and I think we took the extraordinary step of working with the viability group to see if they could come up with an opportunity, working with Poyry to find somebody who would buy the asset and run it as a papermill,” said Ted Seraphim, Executive Vice-President and Chief Operating Officer of West Frasier.
“This process has been going on for 9 months and at this point, there are no legitimate offers for the mill as a growing concern. That deadline has passed.”
Seraphim said West Frasier was going to continue to explore all opportunities to bring value from the Eurocan mill to West Frasier. He was unable to comment on what these opportunities are.
“The news is, Ted said they’re going to go ahead and start decommissioning the mill. This is a process that is going to take some time. I explained to him the interest in the community, enter into a co-op type partnership with the potential purchaser and he heard and he understands what I’m trying to do and he’d like to work with me in that. It is going to take some time to get the processes set up for decommissioning the mill,” said Mary Murphy, President of local CEP 298.
Murphy said West Frasier would be more then willing to enter into an agreement if anyone comes to the table within the next few weeks in regards to purchasing the mill.
The trust received a huge response from the community with people going in on a daily basis. Murphy stated the trust is there to attract investors because the community does not have the money they need. She said the total cost would be $20-$40 Million as well as the environmental liability.
Murphy also stated the two mills which have recently been reopened are exporting raw pulp and raw logs. “As long as we keep exporting our raw products, there isn’t a huge opportunity for our manufacturing mills to make it,” said Murphy.
“We give the group credit for working very hard on this and it’s been a long tough nine months. There are many parties that explored this potential over the past nine months either through the viability study group or directly through us. It would be in everybody’s best interest including West Frasier’s if someone did come forth with a legitimate offer but unfortunately, none came through.
Murphy encouraged the community to stay positive as this buy in will not over until it is over.
Comment by mary murphy on 11th October 2010
We are still looking for interest in eurocan, there are huge opportunities for a pulp machine, we made pulp till 1975. Still make specialized paper, and utilize the forest in our area to promote jobs-jobs in our area. Need to keep everyone interested to attempt to make it happen. Remember mackenzie was down for two years...and the attraction in mackenzie "supply of fiber and exporting pulp" We have already secured the fiber, we can do this!
West Fraser sell out or sell off?
Comment by William Drinkwater on 22nd July 2010
Seraphim, Ketchum et al should have tried to find a buyer while the mill was running. When looking to purchase a used vehicle most people like to see how it runs unless they are into restoration projects. When Seraphim was the head of sales he took the company down the road of tying paper sales to the U.S. economy. Was it good managment to put most of your eggs in one basket?