Fortress Paper's Thurso Mill DP Conversion Project Delayed by Contractor Walkout
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Fortress Paper Ltd., Vancouver, B.C., Canada, reported this week that an unexpected walkout by unionized contractor employees working on a dissolving pulp conversion and cogeneration projects has resulted in a temporary suspension of construction activities at its Fortress Specialty Cellulose Mill in Thurso, Que. Although the construction unions have not issued an official statement, Fortress says that it understands the walkout is a result of the opposition to a bill proposed by the Quebec Government and not the result of disputes with the company or its employers.
The walkout is reportedly affecting construction projects across the Province of Quebec. Fortress said that it is exploring available options to resume construction work at the mill, and is in discussions with its contractors and government representatives "with a view to resolving this situation as soon as practicable."
"Management remains hopeful that the issues relating to this walkout can be resolved shortly, with the result that the re-start of the Fortress Specialty Cellulose Mill and the commencement of dissolving pulp production that was planned for early November would only experience a minor delay. However, as the duration or outcome of the walkout is out of management's control and cannot be reasonably predicted, a further delay remains a possibility. Fortress Paper will provide updated guidance in this regard following the resumption of construction work at the mill," the company stated in a news release.
Fortress operates three mills, the Landqart Mill in Switzerland, the Dresden Mill in Germany, and the Fortress Specialty Cellulose Mill in Quebec. The company's security papers include banknote, passport, and visa papers and its specialty papers include non-woven wallpaper base products and graphic and technical papers. Fortress Paper's pulp business includes specialty pulp produced at the Fortress Specialty Cellulose Mill, which is currently in the process of converting this capacity into dissolving pulp production along with the construction of a biomass based cogeneration plant.
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