The sale of the Kamloops pulp mill from Domtar to Kruger has been completed.
In a statement Wednesday, Montreal-based Kruger says the Kamloops facility on Mission Flats Road – which manufactures northern bleached softwood kraft pulp and unbleached softwood kraft pulp – will continue to operate as usual.
It also says all 320 jobs at the mill will be maintained with Kruger noting it also “intends” to maintain ongoing initiatives to continue modernizing the mill.
“We are very happy to welcome our new Kamloops colleagues into our group and to expand our activities in British Columbia,” said François D’Amours, Kruger’s Executive Vice President and Chief Operating Officer, said, in a statement.
“Kamloops is a world-class facility and a natural fit for Kruger considering its strong emphasis on product quality, employee safety and sustainability.”
Mayor Ken Christian told NL News he thinks the sale of the mill will be a good move for employees, calling the company a “great addition to the economic landscape” in the City.
“Kruger is a Canadian company with a great track record. They’re a major supplier of paper products in North America and I think they see this mill as an integral part of their operation,” Christian told NL News.
Unifor Local 10B, the union representing workers at the Kamloops pulp mill, was also in support of the sale.
“They’re into container board, biometrics, real estate, wines, spirits, energy… you name it. They’re kind of a real diverse company,” President Sheldon Morris told NL News. “So, yeah, we’re excited to meet with them in the next few weeks and see what their vision for the mill is.”
The sale of the mill was required by the Competition Bureau of Canada as part of Domtar’s $3-billion merger with Richmond-based Paper Excellence, given the implications on the purchase of wood fibre in the Thompson-Okanagan.
Kruger had said the Kamloops mill will enable it to secure the supply of high-quality pulp for some of its paper mills, including those in Quebec, where the Company is investing about $1 billion to build two state-of-the-art tissue plants.
D’Amour says Kruger also “recognizes the important role” that the Kamloops mill plays in the Thompson-Okanagan region, adding they will work to strengthen relationships with local sawmills and wood fibre suppliers.
“Over the coming weeks, as we support and empower our Kamloops team to keep doing the great work they’ve been doing, we will also focus on strengthening relationships with the mill’s existing customers, suppliers, and business partners, as well as with the local community which we are proud to call home from now on,” he added.
Opened in 1965, the Kamloops pulp mill was sold to Weyerhaeuser in 1971 and again sold to Domtar in 2007.