AV Terrace Bay Fibre Supply GEDC AGM

Transcription

1 AV Terrace Bay Fibre Supply GEDC AGM April 2017

2 Aditya Birla Group Overview Group was founded in India in 1858 One of India s leading technology and manufacturing entities since inception; now spanning a global network unlike any competitors Comprised of 16 main business sectors, operating 50 companies in 33 countries across 6 continents Backed by 135,000 employees worldwide World s largest VSF producer Canadian pulp operations significantly help support this Canadian pulp operations: AV Cell: Atholville, NB 350 TPD (DG) AV Nackawic: Nackawic, NB 525 TPD (DG) AV Terrace Bay: Terrace Bay, ON 1,100 TPD (NBSK)

3 AV Terrace Bay 330,000 ADMT per annum; ~5,000m3 or 100 truckloads per day EMPLOYMENT Direct Mill Jobs 385 Direct Woodlands Jobs 375 Indirect Regional Jobs* 1,771 Indirect Non-Regional Jobs^ 1,315 3,846 jobs Annual Payroll ~$35,000,000 Annual Fibre Purchase ~$100,000,000 *Based on Minister s Council on Forest Sector Competitiveness (2005) estimate of 2.33 indirect jobs for each direct. ^Based on Minister s Council on Forest Sector Competitiveness (2005) estimate of 1.73 indirect jobs for each direct.

4 AV Terrace Bay Currently operated as NKSK facility Purchased in July 2012 with intent to convert to Dissolving Grade (DG) production in support of integrated supply chain Planned investment of roughly $300million Despite market-based delays in conversion much CapEx investment already made towards improving reliability, production and facility emissions: = $30.2M = $ 9.4M = $19.3M = $11.5M = $ 7.3M

5 AV Terrace Bay Fibre Supply Team 14 staff 8.5 Greenstone Main Office: field staff & supervisors 3.5 Thunder Bay Satellite Office: planning & finance 1 Terrace Bay Mill Gate: wood measurement 1 Hornepayne Satellite: residual fibre procurement

6 Where does the wood come from? Forest m3 Committed to AVTB Kenogami 835,000 Big Pic 150,000 Pic River 270,000 Lake Nipigon 170,000 TOTAL: 1,425,000 Other fibre sources include: - Residual sawmill chips - Peripheral forest sources (Lakehead, White River, etc.)

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8 AV Terrace Bay Community Involvement Our ownership is based halfway around the world but our success is based here in Greenstone and NW Ontario. We want to build communities that support the workforce we need to grow. AVTB is supporting the Greenstone community: Annual Moosecalac tournament Nakina bass derby Caramat fish derby Curling bonspiels Kenogamisis golf club First Nations Pow-Wows Confederation College / Lakehead University events First Nations Natural Resources Youth Employment Program Ducks Unlimited Many more

9 GEDC Opportunities 1. Infrastructure To promote commuter operations and family life in Greenstone: Building the community we support Spousal Opportunities Very few single income families in forest industry; difficult to attract skilled employees without opportunities for spouses Industrial tax base generates municipal revenues but families establishing roots creates long-term sustainability for communities Nurseries/greenhouses, call centers, by-product manufacturing Commercial/Residential Properties Culture of trade and technical people are spacious properties with large garages/shops New industrial properties needed for large suppliers to single owneroperators Properties/leases needed for equipment/infrastructure/product storage

10 GEDC Opportunities 2. Welcome packages / open houses Identified to us that community information is not always simple to find Annual new resident gala or periodic open-houses might help showcase some of the great aspects of life Greenstone has to offer Greenstone has so many positive things to promote

11 GEDC Opportunities 3. Participation in Forest Tenure Discussions Discussion was very active between 2013 and 2015 but lost momentum Recently, the MNRF has been gauging interest from First Nations, communities and industry in restarting talks Understand that municipalities face some complications becoming a legal part of forest management corporations Mechanisms are in place that would allow Greenstone to benefit from engagement in the establishment in an esfl company and from participating in a new company if only in an observer capacity

12 Thank You