Ontario pulp mill to lay off workers

THE CANADIAN PRESS

TERRACE BAY–Terrace Bay Pulp, resurrected by Buchanan Forest Products two years ago, is the latest plant to announce layoffs in a depressed market.

About 425 workers at the plant on the north shore of Lake Superior are expected to be laid off for a month beginning November 9th.

Terrace Bay Mayor Mike King says it's "bad timing, just before Christmas," but a response to global economic conditions.

The decision comes a week after Thunder Bay's AbitibiBowater pulp and newsprint operation announced a similar two-week shutdown.

The AbitibiBowater layoff, which affects up to 600 people, also takes effect November 9th.

The layoffs come as about 200 workers at Marathon Pulp Inc. are expected to be asked this week to accept wage and benefit concessions.