News — 04 May 2011
Following the long-awaited results of the Ontario Wood Supply Competition, Dryden’s Domtar mill has come out a winner with 626,000 cubic metres per year of wood fibre.
The wood allocation to Domtar is said to protect 331 existing jobs and the wood is to be used for fulltime softwood pulp production in Dryden to generate electricity.
“We recognize and appreciate the efforts of the government to bring the competitive wood supply competition to a conclusion. We remain fully committed to working diligently to improve the competitive position of the Dryden operation, and today’s announcement is a key step toward that,” said Bonny Skene, Regional Public Affairs Manager, Domtar Inc.
Wagner Ontario Forest Management Limited has also accepted 133,500 cubic metres per year to build a wood pellet manufacturing plant in Ignace to sell clean-burning wood pellets for heat and energy production to residential, commercial and industrial customers. The plant is expected to be operating by Oct. 2013 and to create 20 new jobs.
Hudson’s McKenzie Forest Products has not been so lucky with the province’s new fibre allocation format — losing their recent bid for wood supply, a development the sawmill says will cost area jobs.
The offers accepted are merchantable and unmerchantable wood fibre. Merchantable wood refers to a tree or stand that has attained sufficient size, quality and/or volume to make it suitable for harvesting. Unmerchantable refers to undersized trees, trees with defects and harvest residues such as limbs and tops.
The province received a total of 115 applications for the competition, with 24 currently accepted.
By Ally Dunham
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