Another key day for troubled St. Marys Paper

NEWS RELEASE

DAVID ORAZIETTI, MPP

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Orazietti supports St. Marys Paper workers during receivership process
 
SAULT STE. MARIE, ON  - On February 14, 2012, Ernst and Young Inc., the court-appointed receiver for St. Marys Paper Corporation will make a decision on the future of the mill.
 
“In recent years our government has twice stepped up to support the restructuring efforts at St. Marys Paper because we are committed to protecting local jobs” said Orazietti. “Tomorrow the receiver will recommend to the court a preferred offer and begin negotiations. It is my expectation that the parties involved will consider, most importantly, the impact on workers and their families and the economic impact on the community in selecting a potential operator.”
 
The provincial government has made significant commitments to support St. Marys Paper Corporation.

In 2007 the Ontario government provided St. Marys with a loan of over $17 million for working capital to facilitate restructuring.

In October of 2010, the provincial government announced an additional investment of $8.8 million provided in the form of a repayable loan through the Ministry of Northern Development, Mines and Forestry (MNDMF).

In November of 2010, the province entered into a Power Purchase Agreement (PPA) that provided St. Marys with the opportunity to diversity its business activities through the construction of a new biomass fuelled co-generation plant.
 
“Our government has made every effort to help the forestry sector in Ontario mitigate the current challenges,” said Orazietti. “St. Marys Paper has been a cornerstone of Sault Ste. Marie’s local economy for over 100 years and my top priority through the receivership process is to see the revitalization of operations in our community.”
 
In response to challenges in the forestry industry, such as escalating costs and a high Canadian dollar, the provincial government, beginning in 2005, made $1.08 billion available to the forestry sector in Ontario through the Forest Sector Initiatives fund.

The province’s commitment to the forestry sector to update equipment and improve energy efficiencies is the largest-ever provincial investment in the forest sector in Canada.

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