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ShareMoricetown mill re-opens, creates jobs
Published: October 01, 2008 5:00 AMKyahwood Forest Products Ltd. re-opened its mill in Moricetown on Sept. 2 during a visit from Forests and Range Minister Pat Bell.
Chief Ron Mitchell told him that the band was prepared to expand its investment in forestry but looks to the expansion of the Forest and Range Opportunity Program to support that investment and the accommodation of First Nation Rights.
“I think its great that the band has taken such an initiative and now owns the plant,” Patrick Olivier, general manager of Kyahwood Forest Products said.
The mill will mean 65 new jobs.
The mill was shut down indefinitely in November 2007. Since 1995 Kyahwood has been a joint venture between the Moricetown Band and Canfor Corporation. In April 2008, the band acquired Canfors’ interest in the joint venture through its development corporation. It now owns the mill outright with a production of 30 million board feet per year. The band also owns an interest in Houston Pellet LP.
“Canfor has been very cooperative and helpful in ensuring a smooth transition to the new operating company,” former chief and president of Kyah Industries Ltd said in a press release.
Kyahwood has secured a long-term fibre supply agreement for trim blocks from Canfor Houston.
“This is a good news story and we are very proud to own 100 per cent of the mill,” Mitchell said. “From now on we are on our own and able to provide good, steady jobs for the people in Moricetown and surrounding areas.”
The band has invested almost $750,000 to enable the mill to receive and process the trim blocks and to finger joint them into studs for North American markets.
Being an independent contractor will mean smaller duties when the wood crosses the border, because the tax is only paid on the raw materials rather than the finished product.
Chips are sold to local pulp mills and sawdust and shavings to pellet plants.
One hundred per cent of the consumed ends up as a revenue generating product from a sawmill waste stream that might be otherwise have been chipped or burned.
“This helps us to achieve out objective of self-sufficiency and access to natural resources,” Mitchell said.
