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Marathon Pulp Inc. announced the “market-releated” shutdown less than a month after the operation‘s 200 plant workers agreed to help the company survive by cutting their pay by 12.5 per cent and making other concessions. The company said a two-week down period starting Dec. 15 will curtail production by 7,700 tonnes “and allow (the operation) to manage inventory and working capital to the appropriate levels,” according to a news release. Steelworkers officials couldn‘t be reached Monday, but they said earlier there were “no guarantees” that the operation would not go down – either permanently or temporarily – even if workers took major cuts to their wages and benefits. The plant‘s 15 unionized office workers, represented by a different union, late last month rejected a similar reduction to their compensation package. Marathon Pulp, which produces about 200,000 tonnes of kraft pulp annually, is jointly owned by Quebec companies Tembec and Kruger. Also on Monday, Kruger announced it is permanently closing its money-losing plywood mill in Longlac. That decision, which takes effect at the end of January, will elimiminate 130 furniture-making jobs. Meanwhile, Terrace Bay Pulp, which began a month-long shutdown Nov. 9, is expected to resume production next week as planned, the company said. “I have no information indicating (the re-start date) has changed,” Buchanan Forest Products area spokesman Hartley Multamaki said Monday. About 425 people work at the Terrace Bay mill. Though all of Buchanan‘s eight lumber mills are down, Terrace Bay Pulp is equipped to process whole logs and can operate without receiving chips from the company‘s sawmills, said Multamaki. Though oil prices have fallen, the price of diesel fuel remains high and is continuing to hike tranporation costs in the company‘s lumber division, he added. Top of Page |