A3

By STEPHEN LLEWELLYN
llewellyn.stephen@dailygleaner.com

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The AV Nackawic mill may close for four to six weeks starting in December because of a slowing global economy and too much inventory.

"The union executive met with the company today and (were told there's) an 80 to 90 per cent possibility of a four-to-six-week shutdown starting in December," said Mark Cloutier, president of the Canadian Auto Workers Local 219, which represents about 240 mill workers, in an interview Monday.

He said the decision will likely be made Nov. 20.

Cloutier said the union was told most workers would be laid off but some would be retained to run the mill's boiler to keep the building heated during the winter.

Those who are laid off can apply for Employment Insurance payments, he said.

Cloutier said the company told the union the potential shutdown is due to the global economy and high inventory in overseas mills.

"Right now, the mills overseas are not running at capacity," he said. "One mill is completely down."

Cloutier said that if the mill closes even temporarily, it could be a tough Christmas for many workers.

"People are just getting over what happened in '04," he said. "People are just getting back on their feet."

"Right now it is somewhat of a surprise."

St. Anne-Nackawic Pulp Co. Ltd. closed in September 2004. But in January 2006 it was purchased and reopened by Aditya Birla Group of India and Quebec-based Tembec, with the assistance of $67.5 million in loans and loan guarantees from the former Tory government.

The mill now produces dissolving pulp used in clothing from wood fibre.

In June, the Liberal government announced a $10-million loan to the mill to help pay for new technology.

"I am at the point where I was caught basically off guard," said Cloutier. "We knew we had challenges we had to face, and I felt we were moving in the right direction and I still do."

Management didn't ask for any concessions from the workers during Monday's meeting, said Cloutier.

AV Group president and CEO Peter Vinall said the economic downturn is to blame for contemplating the plant's temporary closure.

"We put a lot of money into this to make it a world-class operation so I don't hold any concern about the long term. This is a short-term market issue," Vinall told the CBC.