QUEBEC – White Birch Paper Co. says it has made a final proposal to employees of the Stadacona mill in Quebec City, saying it will be closed permanently unless the company can significantly lower salary, pension benefits and other costs.
The company didn’t publicly announce details of its latest proposal.
White Birch, a privately owned company with executive offices in Greenwich, Conn., was the second-largest newsprint manufacturer in North America when it filed for bankruptcy protection nearly two years ago, in February 2010.
At the time it had about 1,300 employees companywide at three pulp and paper mills and one saw mill in the province of Quebec and a fourth pulp and paper mill in Virginia, operated by its Bear Island subsidiary.
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White Birch said in November, when production at the Stadacona mill was suspended, that the operation wouldn’t be able to survive in the long term unless it got costs down.
The company manufactures high quality newsprint, directory paper and paperboard at mills in Canada and the United States.
A switch to digital forms of publication has eroded demand for paper used in newspapers and directories. Rising energy prices, a strong Canadian dollar and low returns for company pensions have also raised costs for the industry.
White Birch president Christopher Brant said Friday that acceptance of the company’s final proposal is essential for the mill to resume operations.
“While I remain acutely aware of the pain that Stadacona’s idling has already imposed on our valued employees and community, I must emphasize that the situation at the mill is extremely grave,” Brant said in a statement.
“Acceptance of this proposal is essential for the mill to resume operations and will help ensure the mill’s long-term viability, while reestablishing its position as a valued employer in the Quebec community.”
– with files from David Paddon in Toronto
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