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September 29, 1999
(Forest Resources and Agrifoods)


Minister Aylward officially opens Northco

Kevin Aylward, Minister of Forest Resources and Agrifoods, cut the ribbon during Northco Forest Products grand opening today in Baie Verte. Northco is one of the province's 12 integrated sawmills.

Minister Aylward said: "Northco is setting a fine standard in the sawmilling industry. They presently employ 20 people at the mill site and 50 people in the woods. These are important jobs for the people in the Baie Verte area. I also understand that two new trucking businesses have grown in the area as a result of this new mill, trucking chips to the paper mills and trucking finished lumber to the market."

It was the need for consolidating the industry and finding a use for sawmill waste that brought about the beginnings of the integrated sawmill industry. This is an industry that has really come into its own during the '90s. The overall expansion of integrated sawmills has occurred with the encouragement of the Department of Forest Resources and Agrifoods and assisted by arrangements between the sawmilling and pulp and paper sectors allowing for exchanges, transfers and purchases of sawlogs from timber limits held by the pulp and paper sector. Production in 1999 is expected to reach 115 million fbm. Approximately three quarters of this will be produced by integrated mills.

Increasing production caused markets to shift and expand towards the US, where there is a strong demand for Newfoundland products and a favourable currency exchange, at present. Newfoundland put about 40 million fbm into the US market this last year alone.

"Northco is also a fine example of using local labour and materials," Minister Aylward continued. "When this mill was being built the company did an assessment of other mills. The owners rejected a proposal for people to come in and build the mill. Instead, five local welders, one local machinist, 10 labours and two electricians were hired. The machine shop on site was used to construct all transfer decks, waste conveyors, and the infeed and outfeed system for the twin saw."

The forest sector is moving towards value-added products. Most Newfoundlanders and Labradorians are surprised to learn of the many wood products produced locally. Products like wood flooring, panelling, cabinets and kitchen cutting blocks and much more.

Newfoundland forests are the best managed forests anywhere in Canada. Government and industry have the professional expertise to manage and sustain the fibre supply into the next millennium. Government is committed to this goal and will continue to provide the resources needed to meet it.

Media contact: Cynthia Layden-Barron, (709) 729-6183.

1999 09 29 4:35 p.m.


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