HALIFAX – The decision to close the Bowater Mersey paper mill is a “huge blow to workers, their families and the community in Queens (County),” Nova Scotia Premier Darrell Dexter said Friday in a statement.
Mill owner Resolute Forest Products, based in Montreal, says the closure is a result of the struggling newsprint market and the fluctuating currency values.
The company says it will cease operations by 12:00 p.m. Saturday.
It was about six months ago the provincial government awarded the Resolute a five-year forgivable loan worth $25-million to help keep the Brooklyn, N.S. mill running.
That support package came on the heels of unionized Bowater workers voting to cut 110 workers, through layoffs and attrition, to reduce labour costs.
Dexter told reporters Thursday the money – set to be given in $5-million portions annually – had not been spent and the company returned the loan this week.
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“I have no regrets about the investments we made in the community,” the premier’s statement reads. “I’d rather fight for good, secure jobs with every reasonable effort than never try at all.”
Dexter points out that it’s not just Nova Scotia – which now has only two paper mills in operation – that is suffering from the downturn in the paper manufacturing industry.
“This is indeed a disappointing day, but those workers and their families should not be disappointed in the commitment and dedication they showed over the past six month,” he said.
“But I know that Queens is strong and resilient. The area has been able to thrive despite all the changes and challenges it has faced over the years.”
Dexter assured the provincial government would dedicate resources in the coming days to “help provide stability, support and leadership” in the wake of the shutdown.
Including the 110 positions cut last year, the jobs of about 320 people have been affected by the turmoil the mill has faced in recent years.
Read the full statement from Darrell Dexter below.
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