The sudden announcement that Sun Wave Forest Products has bought the Watson Island land, has created a bit of stir in the community and become the focus of the Daily News’ attention in its Friday edition.
Besides a front page story on the sale and what may be ahead for the Skeena mill site, the editorial page weighed in with its own take on the situation. Though, it strangely listed Managing Editor Earle Gales editorial, as a “Guest Editorial” which seems a bit weird, as it gives one the impression that the editor is but a guest at his own publication.
At any rate, you can check both aspects of the story below.
NEW ERA FOR SKEENA MILL SITE STARTS TODAY
By Sarah Fox
The Daily News
Friday, June 16, 2006
Page One
Another huge step on the road to re-opening the Prince Rupert Pulp Mill was taken yesterday when Sun Wave Forest Ltd. Bought the Watson Island land that the idled mill rests upon.
“This is an exciting opportunity for the company,” said Susanna Xu, president of Sun Wave Forest Products, the B. C. division of the China Paper Group (CPG)
“We have had a lot of support and cooperation from all the stakeholders and are pleased to take this important step towards the re-start of the pulp mill.”
Although the future of the pulp mill looks good, Xu said that the pulp business-market in Canada is currently very challenging.
Among the major hurdles for the company are the high Canadian dollar and pulp prices.
“We have to complete the various final steps necessary to re-commence operations, including the requisite capital infusion,” she said.
“While progress has been made to restructure the mill costs, we still need to finalize various supply and financing arrangements to permit an orderly start-up of the mill.”
Sun Wave Forest Products Ltd. Has been working on the project to restart the pulp mill since December 2004.
In April 2005, it’s affiliate, bough the mill’s production equipment after the bankruptcy of New Skeena Forest Products Ltd.
At that point, the mill assets seemed destined to be shipped off to China.
However, CPG surprised many when they not only purchased a large amount of the equipment at the Watson Island site but expressed interest in buying the land and running the company.
“It’s the result we hoped and worked for,” said Xu.
“We have made many friends and understand the great need to develop the forest economy in that part of British Columbia.
“We received great support from First Nations, the Pulp, Paper and Woodworkers of Canada (local four,) the municipalities, the provincial government and the business community.
“We are looking forward to working with everyone to make this pulp mill a real success.
“We know the importance of this project to the communities of this part of British Columbia.”
Larry Prentice, court-appointed receiver responsible for trying to get the best deal for all the old Skeena assets, said that although the Sun Wave deal was a year in the making it is a very positive development.
“The next step for those parties involved would be to move along financial lines, to see if running the mill now or a year from now will be viable,” he said.
Mayor Herb Pond commented today that there is still much to do before pulp is loaded into containers and shipped through the city’s new container facilities.
“Prince Rupert city council pledges to continue working diligently with all the partners to see the pulp mill operating once again,” said Pond.
To do this, the city council agreed to extend the date the company must begin to produce pulp at the Watson Island Mill until Dec. 31, 2007, in order to use the tax incentives negotiated with the city.
“The tax agreement has not been lengthened, the clock is ticking, and council simply gave the company a reasonable amount of time to achieve the start-up of the mill,” said Pond.
Prince Rupert and Port Edward Economic Development manager, Jim Rushton thinks the start up of the pulp mill will be a great addition to the growing economy in Prince Rupert.
”(The Pulp mill) would be a great addition to the new container facility, ROYOP’s shopping centre, the cruise industry, the gaming centre, the proposed LNG terminal, the seafood industry and increased business activity at Ridley Terminals and Prince Rupert Grain.
”Prince Rupert’s economy is growing, strengthening and diversifying,” said Rushton.
His comments were echoed by Economic Development Minister Colin Hansen.
“The entire communities of Prince Rupert and Port Edward have been very supportive of the deal and we’re pleased to see this positive outcome.” Said Hansen. “Prince Rupert has a bright future and today’s deal will further enhance it.”
Friday, June 16, 2006
Page Four
The Daily News
GUEST EDITORIAL
Announcement was a huge boost for town
Yesterday’s sensational news – that the China paper Group has bought the land underneath the old Skeena pulp mill – is sure to have been the main topic of conversation around many dinner tables last night as people mulled over just what the purchase means for our town.
The China Paper Group, through its B. C. division Sun Wave Forest Products, has sent out the clearest signal to date that it would like to reopen the mill that has stood empty and idle for these past several years.
Optimists are doubtless already looking forward to hundreds of new jobs, an influx of new families and a sudden spike in amenities – but these are still early days and it’s important not to get ahead of ourselves.
Most people closely associated with the deal are still warning Rupertites to remain calm. There is still a long way to go as yet before the mill can reopen. Several ducks will need to line up before the lines can start rolling again, including a fall in the value of the Canadian dollar, a rise in the value of pulp, certainly around timber supply and the relative good repair of the machinery.
But there is no doubting the fact that the prognosis is a thousand times better than it was a couple of years ago when the mill was off life support and in a deep coma.
While it’s too soon for the patient to dance a jig around the hospital bed, it’s alive and its vital signs are once again strong and few people two years ago would have ever expected that.
Former MLA Bill Belsey, now of Points North Consulting deserves the praise and thanks of everyone who hopes to see this mill get back on its feet.
When almost everyone had given up on the mill, Belsey brought key players together and got them talking.
Interest from the Chinese in buying the old Skeena plant on Watson Island, breaking it up and shipping it back to China, evolved into the idea of buying the land, leaving the mill where it stands and operating it.
It seems more than likely that without Belsey’s intervention, the mill may have been broken up for scrap by now or shipped to the other side of the globe and reassembled.
Other players including MLA Gary Coons, MP Nathan Cullen, First Nations leaders, the union, the provincial government and mayors Herb Pond and Dave Macdonald have all played key roles in getting us to where we are today and deserve our gratitude.
There is still a long way to go but this has got to be the biggest boost for our town since we heard about the plans for the container port.
Here’s to the future!
-Earle Gale, The Daily News
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