Province Contributes to Stora Enso Solution

The province and Stora Enso have signed an agreement that supports the future prosperity of the Strait area.

The agreement means Stora will receive $65 million over the next seven years, provided it remains in business. In return, the province will be released from all contractual obligations to provide land to the company, including a commitment to provide 200,000 acres by 2013.

"We all want Stora Enso to continue its long history in Nova Scotia as a local employer and a major contributor to the province's economy and tax base," said Economic Development Minister Kerry Morash. "The province's contribution should help Stora Enso bridge past short-term challenges, while relieving taxpayers of a costly obligation down the road."

Natural Resources Minister Brooke Taylor said this approach should also be good for small woodlot owners. "By decreasing the amount of Crown land available to Stora, Stora should need to continue to rely on private woodlots to supply their wood."

Ten-million-dollars will be paid out following the first 12 months of operations and normal production -- expected in 2007-08 -- and at the end of each of the next five years. Stora Enso will receive a final payment of $5 million, expected in 2013-14.

Mr. Morash cautioned that this represents only part of the solution.

"This should give both management and employees renewed hope for a long-term, sustainable future for the mill in Port Hawkesbury," he said. "Ultimately, however, the industry is facing significant challenges. It will be the employers and employees who recognize, accept, and adjust to those challenges who will survive and succeed in the long-term."

The 200,000-acre land commitment was made in 1997.

Stora Enso has operated a mill in Port Hawkesbury since 1961. It currently employs about 650 people directly, and creates about 2,400 spin-off jobs.