Stora Enso's Resumption Congratulated

Stora Enso's immediate restart of production is good news for workers, families and communities throughout Eastern Nova Scotia.

"This news means people's energy can once again focus on working together for success and economic growth," Premier Rodney MacDonald said today, Sept. 29. "The Strait area has always shown solid leadership in this respect."

Premier MacDonald is congratulating Stora Enso officials and the constructive and collaborative effort during Stora's 10-month shutdown. This included Stora's union and management, and municipal officials in Richmond County and Port Hawkesbury.

The Department of Natural Resources, the Department of Environment and Labour, and the Office of Economic Development brought about a $65-million agreement to support Stora Enso's future prosperity.

"We are pleased that Stora will continue its long history in Nova Scotia as a local employer and a major contributor to the province's economy and tax base," said Richard Hurlburt, Minister of Economic Development. "The province is pleased to have been part of the solution, and to have helped get the sides talking."

The agreement signed in the spring between the province and Stora means the company will receive $65 million over the next seven years, provided it remains in business. In return, the province will be released from previous contract obligations to provide land to the company, including a commitment to provide 80,000 hectares (200,000 acres) by 2013.

Ten-million-dollars will be paid out following the first 12 months of operations and normal production, which is expected in 2007-08. At the end of each of the next five years Stora Enso will receive $10 million. The company will receive a final payment of $5 million, expected in 2013-14.