Paper mill lays off more than 100

Resolute Forest Products paper mill in Thorold was indefinitely idled Friday because of shrinking demand for newsprint, putting more than 100 people out of work.

But the company and the union representing workers said they are hopeful the plant can be taken over by a third party to produce a new product.

“Newsprint consumption in North America is down 70 per cent,” said Seth Kursman, vicepresident of corporate communications, sustainability and government affairs for Resolute Forest Products, speaking from Montreal.

“We have really worked as hard as we can to try to keep that mill open as long as possible, but with recycled paper costs also being as high as they are, it became unsustainable.”

The Thorold mill had an annual production capacity of about 197,000 metric tons of newsprint.

The company started downtime at the plant in mid-December and most of the workforce hasn’t been on site since then.

Resolute is in talks with Stone House Investments Holdings Inc., an independent third party, about converting the plant for production of another product.

The company said in a press release the conversion of the mill would provide “a more sustainable future” for the operation, its workforce and surrounding community.

Kursman said he didn’t want to speculate on whether the mill’s workforce would be called back if the deal with Stone House works out.

“I want to manage expectations and be fair,” he said. “We’re working with a third party in the hopes the mill could reopen in the future to make another product, but we don’t know that’s going to happen for sure. We’re certainly working towards that.”

John Kenny, president of Unifor local 84 which represents the workers, said chances of the mill restarting are 50-50.

He was there were about 120 workers at the building, though some had been let go since December. Everyone had about 18-40 years of seniority because of layoffs of newer workers in the past.

He said there were 1,500 employees in its heyday.

“The company’s been telling us for years, nobody’s reading newsprint anymore. The newspaper is going the way the typewriter went.”

He said the new plan would be to produce brown paper, such as yard leaf bags and fast food bags.

Thorold Mayor Ted Luciani said Resolute seems very confident the partnership will work out and starting a new product would be positive.

“I’m not throwing in the towel. We’re willing as a city to work with them. We’re willing to sit down any time and see what we can do for them to get the plant going again,” Luciani said.

“I’ve got my fingers crossed. I’m confident it will be open again.”

Kursman said Resolute has had to idle or close many plants over the years as part of changing times.

“It’s certainly never easy and it’s very difficult, especially the human impact,” he said. “That’s why we’re making a sustained effort to work with a third party who hopefully will then be able to repurpose the mill and provide for a more sustainable future for the operation.”