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Management Side
Sale of Tolko mill in The Pas complete

MANITOBA (From The Sun) -- A paper mill that serves as a key economic driver in northern Manitoba has received an 11th hour rescue, less than a month before it was slated to be shut down.

Tolko Industries announced Thursday it has completed a sale of its pulp, paper and saw mill in The Pas to Canadian Kraft Paper Industries, a move that will spare more than 300 jobs.

Swampy Cree Holdings, an economic conglomeration of eight First Nation communities, was also pivotal in the joint agreement, which avoids a scheduled Dec. 2 shutdown of the mill.

As part of the deal, workers agreed to a 10% wage rollback for five years and a three-year relief on pension solvency payments.

Premier Brian Pallister called the deal "a testament to teamwork," and acknowledged union workers there who voted in favour of the deal, despite the concessions.

"They had a difficult decision to make," Pallister said.

Pallister said the agreement is a relief for the region and called it a deal that "has gone a long way towards saving the future of The Pas."

"It also sends a tremendous signal, I think, to all of the potential employers and investors in our province that we're ready to partner, that the North is ready and looking for investment and development," he said.

Pallister said the province offered no direct subsidies or bailouts to the companies, and expressed confidence CKP and its parent company, American Industrial Acquisition Corporation, made an educated purchase.

"It's a competitive industry, and this is a competitive purchaser interested in making it work," he said.

"This sends a powerful message that there's opportunity in the north and it doesn't depend on handouts from the government."

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Join Jim Thompson on the 2nd Annual Papermakers Mission Trip to Guatemala, 22 - 29 July 17. Build houses, talk about the pulp and paper industry. For more information, email jthompson@taii.com with "Guatemala" in the subject line.


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