Area mill set to close as another readies for re-opening

TBT News has learned that as one area mill attempts to restart, another will be shutting down indefinitely due to the downturn in the lumber market.

Mackenzie Forest Products near Sioux Lookout will close down part of its sawmill next Friday and completely shutdown within a week. That closure will put about 65 employees out of work. Mill Manager Don Fenlon said there is "no money and no demand" in the lumber market and therefore the mill could remain closed well into next year or beyond.

The Mackenzie operation restarted at the end of May after being shut down since October of 2008. The news comes as another Buchanan mill, Terrace Bay Pulp is trying to restart production.

Buchanan Group lawyer, Yves Fricot, said the pulp mill owners hope to exit creditor protection by Sept. 6. The delays are blamed on legal and technical issues. Fricot added that Terrace Bay Pulp will send out recall notices to mill employees early next week.

Maintenance staff has been returning to work over the past few weeks. The notices are expected to inform workers to return within 10 days.

Terrace Bay Pulp employed about 400 workers before it closed in March 2009.