Paper Excellence [on February 11] announced an indefinite production slowdown of its Meadow Lake, Saskatchewan, Canada, BCTMP (Bleached Chemi Thermal Mechanical Pulp) mill due to repeated lack of railway service.
The mill has the capacity to produce 410,000 tonnes of BCTMP per year, which is exported to customers primarily in Asia.
According to Paper Excellence, Meadow Lake Mechanical Pulp Inc., which employs 190 people and infuses over $1 million daily into Canada’s economy, is dependent on CN Rail, which has failed to transport Meadow Lake’s pulp production to ports for months. The mill has exhausted local storage facilities.
“While we remain committed to servicing our customers’ needs during this slowdown, we are extremely concerned about this railway situation and hope that it can be resolved soon,” said Stew Gibson, Vice President, Operations and Logistics.
Paper Excellence plans to return the mill to full production once reliable railway service is reestablished.