Not surprisingly, Canada accounts for almost 10 per cent of the world’s total forest coverage. This also makes Canada’s pulp and paper industry one of the country’s most vital industries.
In Nova Scotia, the pulp and paper industry contributes significantly to the province’s economy and is a major employer — Northern Pulp Nova Scotia (NPNS) alone has more than 330 direct employees. The forest industry province-wide provides over 11,500 direct and indirect jobs.
Jobs extend beyond the forest and into areas such as trucking, contractors and ports. Northern Pulp and its parent company, Paper Excellence, is among the largest exporters out of the Port of Halifax, exporting more than 1,700 ocean freight containers every month through the port.
“Halifax is one of Canada’s top four container ports in terms of the volume of cargo handled,” says Kathy Cloutier, Paper Excellence director of communications. “Northern Pulp exported over $170-million to China in 2016, making wood pulp and Northern Pulp, in particular, over one-third of the province’s exports to China,” she adds.
To accomplish this monumental feat, NPNS hires several freight companies that employ 30 full-time truck drivers every month, just to move NPNS’ volumes.
Each driver operates equipment with a capital purchase cost of $250,000 per unit, according to Cloutier. The port handles over 1,500 vessels every year and generates more than 12,400 jobs and $1.7-billion in economic impact, she says.
Since assuming ownership of NPNS in 2011, Paper Excellence has injected over $200-million into the business for such things as capital expenditures, loan principal repayment and interest payments, pension funding and to support operational and working capital needs of the company, says Cloutier.
“When Paper Excellence bought the mill and its operations, they assumed all land and government loan responsibilities,” she adds.
Annually, NPNS invests and spends over $315-million in the Nova Scotia economy, the majority of which stays within the province. In fact, as of December 2017, since the company changed hands in 2011, NPNS has paid $51.94-million to the Government of Nova Scotia, including $34.2-million in interest.
“While the ownership of Northern Pulp is often described as ‘foreign-owned,’ it must be understood that the $315-million generated annually by Northern Pulp stays within the province, benefitting each and every Nova Scotian on a daily basis,” explains Cloutier. “In fact, Colchester County benefits most, followed by Pictou County and HRM.”
Northern Pulp further directly generates more than $11-million annually in tax revenues, according to Cloutier, who says, “Northern Pulp operations also directly affect and benefit over 1,300 companies over several industries, with a total annual value output exceeding $535 million.”
While the pulp and paper industry has faced many uncertainties over the past few years — the U.S. housing recession, the booming digital age and decline in newsprint and stationery use — the industry is resilient.
And a key part of maintaining the health of the industry is a solid commitment to sustainability and the environment, according to Cloutier, who says Northern Pulp will continue its progressive efforts in reducing their environmental footprint. This includes a new land-based effluent treatment facility that will replace the existing Boat Harbour facility.
Technical options available must include an outfall discharge in order for Northern Pulp to operate. There are 131 Kraft mills operating in North America; 20 per cent operate AST systems (proposed new system for NPNS), while 80 per cent operate ASB (current system for NPNS) systems. In both countries, no other treatment process is used to treat Kraft mill effluent. Northern Pulp has thoroughly investigated treatment options available to Bleached Kraft mills.
“Northern Pulp and owner, Paper Excellence, are fully committed to undertaking all measures within our ability to ensure there is a new effluent treatment facility in operation by January 2020,” assures Cloutier.
“This is the right time for Northern Pulp. We have the right owner. We have the right product and the right people,” says Cloutier. “Forestry is not a sunset industry in Nova Scotia. Northern Pulp, along with partners spanning across the province, are key to maintaining the health and vitality of the sector,” she adds.
