Sonoco Products Company has purchased the business of the Abzac Canada-Fort Frances Division tube and core plant in Fort Frances, Ontario.
The plant produces paper cores for use in rolls of paper produced by paper mills.
Instead of buying the plant, Sonoco is leasing a portion of the plant. Abzac will continue to operate the plant for the next 90 days during the transition phase.
“We did not purchase the plant, but will lease a portion of the plant for pre-cut services of cores to our customers,” said Roger Schrum, Sonoco’s vice-president of Investor Relations and Corporate Affairs.
“These cores are used by the paper industry to wind paper products.
“As you are aware, there have been a number of permanent shutdowns of paper mills in this region, including mills in Kenora, Dryden, Thunder Bay, and Sault Ste Marie, Pine Falls,” he added.
Abzac has suffered in recent years when its main customers, paper mills in the area, idled their mills and stopped producing paper.
The operation in Fort Frances is expected to be smaller and will employ 5 people.
Source:
Local core plant to be smaller (Fort Frances Times)