Indo-Canadian paper mill re-opens
An Indo-Canadian paper mill which had closed two years ago due to bankruptcy has opened again.india Updated: Jun 18, 2006 10:52 IST
An Indo-Canadian paper mill which had closed two years ago due to bankruptcy has opened again.
The AV Nackawic pulp mill in New Brunswick, a joint venture of Aditya Birla Group and Tembec Inc (Canada) was officially reopened on Friday by State Premier Bernard Lord.
The mill closed in September 2004 when the former owners declared bankruptcy. It was reopened in January this year with a reduced work force of over 250 employees under the ownership of the Aditya Birla Group and Tembec Inc.
New Brunswick Premier thanked the management of Aditya Birla Group and Tembec Inc. For their commitment to the province, and said, "this is a very important day for the people of mill and the entire province."
Shailendra K Jain, Group Director, Pulp and Fibre Business, Aditya Birla Group said "the company may need more government help to cope with the rising Canadian dollar.
The Canadian dollar has increased by eleven per cent since the decision to buy the mill in April last year, while costs have remained the same," he said.
Jain said unless government could provide help such as more wood allocation, or lower wood prices, export profits would be cut by close to eight million dollars per year.
Premier Bernard Lord said that the government had already provided loans, and reduced wood prices by 25 per cent this year, but was considering other requests from the firm.
Frank Dottori, Chairman of the company said that to survive long-term, the company must continue to address the fundamental issues of high wood and energy costs.
The Aditya Birla Group of India holds 75 per cent interest in the joint venture, while Tembec Inc. Holds the remaining 25 per cent.
First Published: Jun 18, 2006 10:52 IST