Northern Pulp’s impact: 5 jobs for every mill employee
By Cindy Macdonald/Pulp & Paper Canada
September 23, 2015 - What’s the economic reach of one pulp mill? Northern Pulp Nova Scotia has released results of an in-depth economic impact analysis conducted by Gardner Pinfold. The analysis finds that Northern Pulp is a significant contributor to the economy of rural Nova Scotia, creating well-paying jobs in typically high-unemployment areas. The unique partnerships between Northern Pulp and Nova Scotia sawmills, forestry contractors and private woodlot owners are a fundamental relationship for the forest industry within the province, the company states.
More than 2,040 full-time equivalent jobs are created by Northern Pulp, with workers earning $101 million in income. A supply chain of more than 1,300 companies supports Northern Pulp’s kraft pulp mill, with a total value of output of $535 million per year.
Gardner Pinfold’s analysis shows that for each employment position at the mill, five additional jobs are generated by the mill (2,043 total employment impacts).
“The challenging economic conditions for forest industries have led to mill closures in Nova Scotia and other Atlantic provinces - leaving the remaining companies even more reliant on one another. Our partnerships with sawmills, forestry contractors and private woodlot owners are critical to the success of Nova Scotia’s forest industry and to the rural economy,” said David Kerr, senior vice-president at Paper Excellence Canada, the owner of Northern Pulp.
Northern Pulp is uniquely connected with many partners in the forest industry. All of its forest management activities, including road maintenance, road construction, harvesting, trucking and silviculture, are conducted by contractor operations. “These forestry contractors provide a significant number of rural jobs across Nova Scotia and are essential partners to Northern Pulp’s success and the rural economy,” says a company statement. “Private woodlot owners and sawmills are also an important part of Northern Pulp’s supply chain.”
Jeff Bishop, executive director of the Forest Products Association of Nova Scotia agrees. “As one of the largest forest industry operations in Nova Scotia, Northern Pulp's economic impact reaches far beyond the borders of Pictou County. Northern Pulp is a vital partner in the supply of wood fibre that keeps our entire industry moving forward every day - employing thousands of Nova Scotians."
Northern Pulp produces and exports more than 280,000 tonnes of kraft pulp annually, making it one of the largest shippers with the Halifax Port Authority.
The company manages 250,000 hectares of forest land as well as a nursery where six million seedlings are grown each year. Northern Pulp is also the largest supplier of sawlogs to provincial sawmills.
In turn, the company purchases in excess of $85 million worth of wood products each year. It generates significant revenue for approximately 15 Nova Scotia sawmills through the purchase of by-product chips and bark, the analysis shows. In fact, Northern Pulp purchases more than 90 per cent of the wood chips produced in Nova Scotia, receiving, on average, 120 trucks of fibre daily.
The authors of the study looked at the direct impact of the mill, the supply of goods and services that support Northern Pulp’s mill operations, and the induced impact arising from the spending of incomes earned in direct and indirect activities.