Neucel to remain closed for 2016

Neucel Specialty Cellulose will remain closed for the remainder of 2016

Neucel Specialty Cellulose’s Chief Executive Officer Wanli Zhao sent out an update on March 29 regarding the pulp mills current state of curtailment, and it wasn’t good news. Zhao mentions that Neucel “has been in a market driven production curtailment since the beginning of 2015. The forecast at that time was that conditions would improve to the point where we would be able to resume operations in 2016. Regrettably, this is not the case.”

Zhao cites the global dissolving pulp market and other economic factors as the reason for not resuming operations at this time. However, Zhao added at the end of the correspondence that the shareholders “remain committed to the mill in Port Alice and will work towards the operational reliability of the mill with the intention to restart production when the market improves and other conditions are suitable. This is a difficult time for all stakeholders and we continue to ask for your patience and support.”

Port Alice Mayor Jan Allen stated that this news wasn’t surprising because of the previously mentioned global dissolving pulp market. “The market remains weak, and when the market is weak, they can’t start the mill up,” adding that while Neucel may still be in curtailment, it hasn’t stopped the Port Alice community from continuing on. “The houses and stratas (in Port Alice) have been selling, its really incredible,” said Allen. “The Village of Port Alice is moving forward with or without the mill. The best kept secret is out, Port Alice is the most incredible municipality to live in or visit.”

 

 

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