Report commissioned by Port Hawkesbury Paper confirms economic impact of company's SC paper mill in Nova Scotia, shows it generates about C$24M in direct labor income at average wage twice that in the province, contributes about C$112M to province's GDP

Debra Garcia

PORT HAWKESBURY, Nova Scotia , July 3, 2014 (press release) – 21 months after its re-opening, Port Hawkesbury Paper LP (PHP) is on course to contribute significantly to the economy of Nova Scotia.

In the spring of 2014, PHP partnered with Gardner Pinfold to undertake an economic analysis and impact study. The impacts were reported for five indicators: gross value of output, gross domestic product, employment, labour income and taxes. This was the first study that has been conducted since the mill was purchased and reopened in October 2012.

The report confirms that there are an estimated 1,100 full time equivalent jobs in both the mill and woodlands, and the mill generates about $24 million in direct labour income. This equates to an average of $74,000 per employee, double the average industrial wage in Nova Scotia. Through its direct and spinoff activities, PHP generates over $112 million to the Nova Scotia GDP. Direct activities account for 1% of manufacturing, and in 2013, annual spending in the province exceeded $171.5 million. In addition, PHP spent another $40 million elsewhere in Canada and the U.S. Tax revenues of all types, from both direct and spinoff activities, amount to approximately $23 million annually. This includes personal income tax, taxes on products and production, and municipal taxes.

“We’re encouraged by the report as it confirms the mill’s impact across many parts of Nova Scotia, in particular, rural areas,” says Marc Dube, PHP Development Manager.

“In addition to quantifiable measures, we are grateful for the strong relationships we are building, with a committed team of employees, with our community partners and government stakeholders, and with our customers and suppliers.”

The mill’s successful restart has also brought confidence to the forestry sector; over $11 million has been spent by Port Hawkesbury Paper harvest and hauling contractors on mostly new, and some used, equipment.

Brent MacInnis, Owner of MacInnis Lumber in Frenchvale, says: “We’ve been really encouraged since the mill re-opened, and they’ve invested in equipment and training programs for a number of contractors,” he says, “and with this comes increasing confidence from many contractors to want to invest in our own equipment, as well as invest in hiring more employees.” MacInnis Lumber employs 40 and that number is growing.

“Many businesses and families in rural nova Scotia are glad to see this mill and woodlands running smoothly,” MacInnis says, “While the mill may be physically located in one part of the province, its impact is far- reaching across many counties and sectors.”

The PHP mill team is focused on using all available assets at the mill, and investing in research and industry innovation on value-add projects such as turning wood into a non-food sugar product. The forestry team is achieving the highest levels of certification to ensure the long term sustainability of the woodlands resources. PHP recently announced a partnership with Eastern Canada Stevedoring to manage and market the handling of materials through the company-owned wharf.

To download a summary copy of the report, please visit http://www.westlinnpaper.com/PHP_EcomomicImpact_8%205x11_PRINT_June%205.pdf

About Port Hawkesbury Paper
Port Hawkesbury Paper LP (www.porthawkesburypaper.com) is a forestry operations and paper mill in Port Hawkesbury, Nova Scotia. Port Hawkesbury Paper is one of the most competitive producers of super-calendared paper in North America and ships its products (retail inserts, catalogs, magazines, circulars and coupons) to customers throughout North America and around the world. Port Hawkesbury Paper forestry manages over 500,000 hectares of Crown Land, is FSC certified and recently passed an SFI third-party audit of its operations.

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