President of shuttered specialty wood products manufacturer Global Sticks in Thunder Bay, Ontario, indicates he is in talks with investor, hopes to make announcement this week
January 16, 2012
– The president of specialty wood products manufacturer Global Sticks says he hopes to find out this week how soon he will be able to reopen the shuttered plant in Oliver Paipoonge, in Ontario's Thunder Bay.
Reggie Nukovic indicated on Friday that the company had been working on an investor, but had not had any confirmation of the investor "coming through." He said he expected to have something "a little more concrete" to share this week, The Chronicle Journal reported on Jan. 14.
Global Sticks halted production in November, laying off 80 workers. Officials at the plant, which produces a range of items including ice cream sticks and tongue depressors, said it was having problems sourcing reliable birch supplies.
In December, Nukovic announced a new business plan and said he was hoping for a cash injection of C$2 million.
Nukovic said last week that the company does not want to take on any more debt, but now had to think about purchasing some wood. He said Global Sticks currently had 80 loads on the ground, but noted that suppliers were reluctant to deliver because they were concerned about getting paid.
Nukovic described fiber supples as good during September and November, but predicted challenging times ahead for finding the required specifications of birch.
The primary source of this article is The Chronicle Journal, Thunder Bay, Ontario, on Jan. 14, 2012.