Shutdown at Sexton Lumber Expected to be Temporary

Sexton Lumber, located in Bloomfield, closed Thursday, September 26, due to a shortage of logs. The temporary shutdown represents an inventory issue and is expected to last two to three weeks.

“Sexton Lumber is a major player in our forest sector,” said the Honourable Tom Marshall, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. “We value this operation and its contribution. Our officials continue to work with Sexton Lumber to stabilize the wood supply. Some time is needed to rebuild the sawlog inventory.”

The Provincial Government is committed to continuing to work with Sexton Lumber. During the last month, options to supply additional sawlogs were offered through Corner Brook Pulp and Paper Ltd. and the Provincial Government. However, these options were not accepted by the company.

Since the closure of Abitibi-Bowater in 2009, the Provincial Government has been seeking alternative uses for the paper mill facilities and forest resources in central Newfoundland through a Call for Expressions of Interest. Additional timber in the amount of 100,000 cubic metres has been allocated to Sexton Lumber. The Provincial Government will now complete its due diligence to reach a responsible decision which ensures forest sector innovation and diversity to maximize benefits for the entire province.

In 2010-11, through the Forest Industry Diversification Fund, government provided $2.75 million in the form of an equity investment in the facility. The Provincial Government continues to support Sexton Lumber with assistance in forest planning, road construction, and staff resources. For example, to assist the company to reduce its harvesting and trucking costs, permit volume was distributed among forest management districts that were closer to the sawmill.

- 30 -

Media contact:
Diana Quinton
Director of Communications
Department of Natural Resources
709-729-5282, 631-8155
dianaquinton@gov.nl.ca 

2013 10 01             6:10 p.m.