News — 23 February 2011
The idled mill in Ear Falls is looking at a restart in the fall of 2011. President of Eacom Timber and owner of the Ear Falls mill, Rick Doman, says the company has to work with the CEP (Communications, Energy and Paperworkers Union) to achieve an agreement that helps the mill become more competitive.
“That mill is still quite high cost and we hope that we’re successful with CEP. I can’t comment on the discussions, other than to say that we’re working cooperatively with the CEP to try to achieve an agreement that makes sense,” says Doman. “There’s nothing negative and it’s quite positive so far.”
Doman also reflects on the additional ten per cent tax that is currently levied on Canadian lumber shipments from Ontario into the United States, and says that should be coming to an end in August of 2011.
“As far as we’re concerned, we would have liked to restart the mill a long time ago, but this additional 10 per cent tax and the $70 differential in stud prices was really challenging,” relays Doman.
Doman says the board is looking for a long-term agreement with the CEP, and with lowered costs, the mill can look into the purchase and upgrades of additional capital equipment to enhance the productivity of the mill and increase capacity.
The mill was purchased last year from Domtar, with plans by Eacom to reopen as soon as possible. Doman says he has always wanted to see a restart for this site, and is anxiously awaiting a market turnaround to make it reality.
By Ally Dunham
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