NS: Idle NewPage mill not so easy to restart

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By The Cape Breton Post

A court affidavit, filed with the Nova Scotia Supreme Court, says the mill in Cape Breton requires $2 million to be fixed up before being operational again.

A locked gate frames up the scale house at the NewPage mill in Point Tupper in this file photo.

[SYDNEY, NS] — A court affidavit says the idle NewPage paper mill in Cape Breton requires $2 million in repairs before it can be restarted.

The affidavit, filed with the Nova Scotia Supreme Court, says a maintenance shutdown planned for late September 2011 was cancelled when the money-losing mill was shut down and put up for sale.

In the document, chief restructuring officer Peter Wedlake says the mill's potential buyer — Pacific West Commercial Corp. — says the repairs must be done quickly because the company doesn't want to miss potential orders.

The affidavit says much of the money for the repairs will come from fund provided by the provincial government.

Meanwhile, Pacific West has said it won't go ahead with the purchase unless a complicated electricity rate arrangement is approved with private utility Nova Scotia Power Inc.

It remains unclear when the Canada Revenue Agency will issue its ruling.

Organizations: Nova Scotia Supreme Court, West Commercial, Nova Scotia Power Inc. Canada Revenue Agency

Geographic location: Cape Breton

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  • johnny smoke
    September 09, 2012 - 08:08

    I hear that upwards of $25 million has been spent keeping this mill in "Hot idle" something tells me that was not the only thing that was idle. Something tells me that was a very expensive tax funded vacation for the maintenance crews charged with this task. I wonder what other goodies lurk below the surface.

  • johnny smoke
    September 08, 2012 - 08:03

    I am praying that C.R.A. scuttles this mammoth giveaway of taxpayers money. It is on the magnitude of the Sydney Steel fiasco, the Clairtone fiasco and most recently the DSME fiasco. I am amused by the claim that millions were spent keeping this mill in "Hot idle", the maintenance crews crews might have been hot alright but it is obvious that they were idle as well, how anyone could just sit around for several months knowing that critical work had to be done is nothing less than criminal. I wonder will all of those charged with the upkeep of this mill now come forward and return their pay cheques? I am waiting!.