Harmac reopening can serve as a model
Robert Barron, Daily News
Friday, November 07, 2008
Congratulations were the order of the day at Nanaimo's Harmac pulp
mill on Thursday afternoon.
Despite the rainy weather, hundreds of workers, management, families
and dignitaries who gathered for the mill's grand reopening
ceremonies wore sunny smiles.
Forest Minister Pat Bell was joined by Nanaimo MLAs Leonard Krog and
Ron Cantelon, Nanaimo Mayor Gary Korpan, Nanaimo-Cowichan MP Jean
Crowder and others at the event signifying the mill's rebirth after
it shut down last May
Surrounded by stacks of processed pulp that's awaiting shipment,
general manager Paul Sadler told the assembled crowd that Harmac has
reached "a very important milestone" in its more than 60 years
producing pulp in southern Nanaimo.
"Harmac is not only the newest forest products company in the
province, it's also quite different from anything before it," he said.
"With its new and unique ownership, it's better, stronger and more
creative than other mills. We're in new territory and we're committed
to succeed and be stronger than ever."
Harmac actually began production on Oct. 2 after a five-month
shutdown when the mill's previous owner, Pope & Talbot, went bankrupt.
After a court process lasting almost two months, Nanaimo Forest
Products (consisting of a group of the mill's workers and managers,
Williams Lake-based Pioneer Log Homes, the Vancouver-based Sampson
Group and Fraser Valley construction company Totzauer Holdings)
bought the mill for $13.2 million in August.
Pat Bell said Harmac and its resurrection will "serve as a model" for
other forest companies in the province.
"If any business can succeed, it will be Harmac because its owners,
workers and managers have learned to work together to overcome
difficult challenges," he said before joining workers to cut the
ribbon to commemorate the reopening.
"It took tremendous courage for them to do what they did by putting
their money, homes and families on the line. There's no better
workforce than those engaged in their own business and Harmac is a
shining example of that."
Sadler acknowledged that the international credit crisis, combined
with the softening of demand for pulp in global markets, are
problematic for the mill.
"It's certainly a concern for all of us and we're watching the
situation closely, but we've accomplished great improvements in our
cost structures under our new ownership to make us more competitive,"
he said.
(c) The Daily News (Nanaimo) 2008