CANADA (From news reports) -- The union that represents workers at Corner Brook Pulp and Paper and Deer Lake Power is requesting an urgent meeting with top brass at Kruger Inc., as questions mount about the future of the newsprint sector, and Kruger's ambitious plan to diversify its operations in Newfoundland and Labrador.

In a letter to Kruger Inc. CEO Joseph Kruger that was obtained by CBC News, Unifor president Lana Payne expressed concerns about the "lack of clarity and transparency" from the company about its business plan for the century-old operation, and the future of the roughly 300 people who work at the newsprint mill.

"It is critical that Kruger engages with mill workers and their union, the community of Corner Brook, and the provincial government," Payne wrote.

Payne outlined a list of questions in the letter to Kruger:

• What operations and products, if any, does Kruger plan to permanently cease at the mill, and how many workers will be permanently laid off?
• What new operations, products, or services does Kruger or its subsidiaries or related companies plan on introducing at the mill, if any?
• Is Kruger committed to remaining a forestry-first employer in Corner Brook, or does the company envision a transition to energy production as a primary activity at the site?
• What is Kruger's plan to support workers at the mill and the surrounding community of Corner Brook as these transitions take place?

"We respectfully request an urgent meeting with you to discuss these important matters," Payne wrote.

Shifting focus from newsprint to energy production

Payne's letter emerges as the company slowly restarts one of the two newsprint machines at the mill following an extended shutdown, during which all employees were receiving full pay.

It's also a delicate time for the newsprint industry as markets continue to slump, and Kruger advances a $700-million plan to shift its focus on the west coast from newsprint to wind and hydro electric production.

Kruger is in talks with Newfoundland and Labrador Hydro, the province's Crown-owned utility, and the provincial government, for a long-term power purchase agreement that would allow the construction of a wind energy farm and upgrades to its existing hydro electric assets.

The company is seeking to become a reliable provider of non-emitting energy to the power grid.

When asked about the status of talks with Kruger, Forestry Minister Pleaman Forsey said he could not say much because of the commercial sensitivity of the matter.

"We're still working with Corner Brook Pulp and Paper to make sure we try to have an industry in Newfoundland and Labrador," said Forsey.

"I can't speak of the diversification plan."

Hydro has already been buying electricity from Deer Lake Power, also a subsidiary of Kruger, at inflated prices through a series of six-month contracts that began in early 2024.

Kruger has not stated categorically whether it plans to continue producing newsprint, or shift to other products, but has pledged to modernize the paper manufacturing process and make the Corner Brook mill "one of the most competitive in the industry."

"The diversification project is the key to the long-term success of Kruger on the west coast," said the Liberal MHA for Corner Brook, Jim Parsons.

Parsons believes the diversification plan proposed by Kruger is a "great opportunity" for the province's energy needs, the integrated sawmills in the province, and the long-term viability of the mill in Corner Brook.

As for the company's workforce, Parsons said big layoffs were never part of the discussions, and any adjustments can be made through gradual reductions such as employee retirement and other forms of attrition.

Parsons is also confident that if the plan becomes a reality, Corner Brook Pulp and Paper will be able to repay the $110-million loan it received from the provincial government in 2014.

The balance of that loan had swelled to nearly $123 million as of March 2024 because the company had made only a handful of payments.