Kruger's Corner Brook mill saved by government help

The government of Newfoundland and Labrador revealed in their budget, that they will cover $15.4 million of costs at Kruger's Corner Brook newsprint mill.

The costs include replanting and forest management costs. Specifically, finance Minister Tom Marshall said the government is increasing its share of the annual silviculture program, which replants trees for future use. As well, the government is foregoing Kruger's annual costs for the forest inventory, insect control and managed land programs.

Kruger said the government help will allow the mill to continue running until market conditions improve and the mill returns to profitability.

In exchange for the support, the government said it has reached a deal with Kruger to have some timber rights revert to the Crown.

Source:

N.L. newsprint mill saved by help: Kruger (CBC)