Asia Pulp and Paper in Canada

Page - June 2, 2011
APP and Canada

In Canada, APP now owns five Canadian pulp mills from B.C. to Nova Scotia. In the past four years, APP has been on a buying and investment spree of at least $300 million. The spree began in 2007 when APP, through its wholly owned subsidiary Paper Excellence, bought the Meadow Lake pulp mill from forestry company Millar Western and the Saskatchewan government.  In the past 10 months, at a time when no other company has purchased pulp mills in North America, APP bought four more Canadian mills. The five mills produce more than 1.5 million tonnes of pulp a year.

APP’s move to manufacturing and sales operations in Canada follows years of selling paper products here. Most if not all of the APP products now sold in Canada are manufactured in Indonesia and China. Many of the APP products made in China contain Mixed Tropical Hardwoods, likely sourced from destructive logging in Indonesian rainforests.

APP Canada is headquartered in Brampton, Ontario. Paper Excellence is based in Vancouver, BC.

APP mills in Canada

  • MeadowLake Pulp, Saskatchewan: bought in 2007 from Millar Western and Investment Saskatchewan for $37.5 million. Annual production: 328,000 tonnes of northern bleached softwood kraft pulp (NBSK).
  • Mackenzie Pulp Mill, BC: bought in 2010 from Mackenzie Pulp Mill Development Corp. for $20 million (plus $20 to 30 million in start-up costs). Annual production:  235,000 tonnes NBSK.
  • Howe Sound Pulp and Paper, BC: bought in 2010 from Canfor Pulp for $20 million, plus $40 million in start-up costs. Annual production: 400,000 tonnes of NBSK and 230,000 tonnes of mechanical paper.
  • Prince Albert Mill, Saskatchewan: bought in 2010 from Domtar for an undisclosed price and $200 million in investment commitments. Annually will produce at minimum 145,000 tonnes of dissolving pulp.
  • Northern Pulp, Nova Scotia: bought from Northern Resources in 2011 for an undisclosed price. Annual production: 275,000 tonnes of NBSK.

APP Canada and China

APP ships most of its current or planned Canadian pulp to China instead of to the North American paper manufacturers that the former mill owners used to do business with.

This change could mean the loss of many paper-manufacturing jobs in North America and another blow to the Canadian forest products industry. In China, APP’s Canadian pulp is combined with Indonesian pulp and turned into various paper products.

Some APP products manufactured in China are being exported back to Canada. The great transportation distances alone cause a significant climate-change footprint for these products.

APP products sold in Canada

Currently, APP directly sells printing paper to commercial printers in Canada. The company is expected to soon begin selling tissue products in Canada. Many of the APP China products sold here are believed to contain Indonesian pulp. These include packaging used in the toy sector and glossy books.

APP is subject to anti-dumping tariffs in Europe and the United States but not Canada

APP products are being “dumped” on global markets sometimes at discounts of 20 to 30 per cent, undercutting local producers. A number of jurisdictions have imposed tariffs on these products, including a 20 per cent tariff in Europe and a 38 per cent tariff in the U.S.

The Canadian government has not imposed any tariffs on APP products imported into Canada. Greenpeace does not believe it is currently studying imposing any tariffs nor reviewing the sales of mills.

APP is believed to hold more than $10 billion of debt and has been working to restructure this debt for more than a decade.

APP contact information in Canada:

Asia Pulp & Paper Ltd. (Canada)
20 Hereford Street, Unit 15,
Brampton, Ontario L6Y 0M1,
905-450-2100
Web: www.appcanada.ca

Paper Excellence Canada,
4940 No. 3 Road,
Richmond, British Columbia V6X 3A5
604-232-2453

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