Wednesday, November 2, 2011

Province searching for solutions for Bowater Mersey Mill

Premier Darrell Dexter
The Premier of Nova Scotia says officials with the Bowater Mersey paper mill have told him they need help to address increased labour, wood and energy costs. Darrell Dexter attended an emergency meeting in Liverpool Wednesday with staff and management at the mill. He says the company is in desperate need for the province's assistance to find a solution to cut down costs. Dexter says Bowater Mersey has significant price gaps they need to close.
"They need to take the cost of manufacturing price per tonne from $537 to $480. They need to take their labour costs from $97 per tonne to $80 per tonne. So, as you can see, those are very, very significant gaps."
The President and Chief Executive Officer of AbitibiBowater, Richard Garneau, says the Brooklyn mill will remain open, unless they can't reduce costs. He says the mill will close if costs don't improve. Dexter says Bowater Mersey is a vital part of Queens County and the South Shore and he will be actively looking for help to keep the mill open.