Changing global economic circumstances for the paper industry have been pressing on the industry in Newfoundland and Labrador for years.
The future of the AbitibiBowater mill at Grand Falls-Windsor, established in 1905, may be known as early as next week, according to CBC News. This follows an extensive review within the newly merged paper company of all its assets.
There are a few things to bear in mind:
- If the AbitibiBowater announcement comes next week either right before or right after the Hebron announcement it will likely be swamped by Hebron. Stephenville wasn't a political crisis in the province because it happened out of easy camera range of the St. John's-based local media. The story just won't register, especially if Hebron is a bright shiny object waved around to distract attention.
- "AbitibiBowater manager Brad Pelley said that inside a year, the company has to turn the mill into an operation that's not losing money." Now there's a quote that doesn't even come close to telling the story. Despite whatever changes have been made at the GFW mill, surely to mercy, the mill is suddenly in better financial shape because of the heavy provincial government subsidies that flowed in the wake of the Stephenville closure. Like $30 million of flow over two years to Corner Brook and GFW.
- Will the provincial government be as combative and feisty about downsizing or machine closings at GFW as it has been in the past? Here's another policy carryover from the Grimes crowd to Williams' crew: threaten legal action (like stripping all the company's timber licenses) if one of the two machines at GFW is closed, regardless of the economic costs.
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