Fraser announces mill shutdown
Toronto-based wood pulp company Fraser Papers has announced the closure of a Juniper, New Brunswick-based mill that manufactures pulp-based supplies and lumber products for home builders.
The company will shut down the mill for up to 11 months starting Oct. 5. Fraser cited a weak housing market in the United States, continued oversupply of lumber and a strong Canadian dollar for contributing to Ounsustainable operating losses at the mill.O
In addition, reduced logging activity in recent months has significantly reduced the supply of wood from private lands,O the company said in a statement.
"Despite significant efforts by our employees to minimize costs and improve operations, we have been absorbing significant cash losses at our Juniper sawmill," said Peter Gordon, president and CEO of Fraser Papers
Fraser said it expects tough market conditions will persist into 2008. The shutdown will impact approximately 175 employees at the mill.