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allet confirmed that an ap- proved plan of action for the company's pulp mill in Terrace Bay, will be in the hands of K-C's Chairman of the Board and Chief Ex- ecutive Officer, Darwin E. Smith, before the end of this year. He added, though, that "whether our plan is acc- epted and put into effect by A transcript of the On- tario Standing Committee on Resources Development meeting on June 23 with the president of Kimberly- Clark of Canada, Jack L. Lavallet, was released to the News this week by Gilles Pouliot, Committee member and MPP for the Lake Nipigon riding. In the transcript, Lav- igelluc ame REALTY UMITED R. E. Belluz Realty Limited Simcoe Plaza, Box 715 Terrace Bay, Ontario POT 2W0 Office: 825-9393 825-3221 29 SOUTHRIDGE 4 Bedroom home completely finished, fireplace and attached garage and im- maculate landscaping. we ES 24 TIMBERGROVE This custom built home can be yours with all the extra features that most people dream about. There is a total of 1950 sq. ft. of finished living space and a double garage. The family room with a fireplace and laundry facilities are on the main floor. This home has to be seen to be appreciated. This 3 level split is ready to move in. Nothing has to be done, just get ready for winter by chopping wood for the wood stove and pay no heating bill. Price: $84,900. 63 Laurier Ave. 3 Bedroom Home Price $65,000. 228 McDonald 3 14 Superior St Price $69,900. 344 r St. 3 Bedroom home Price $65,000. 606 Lakeview 3 bedroom 2 storey home Price $85,000. Walkers Lake cottage Price $45,000. Walkers Lake Island Cottage Price $29,000. MOBILE HOMES SCHREIBER Fig's Trailer Park 3 bedroom Price $23,900 Bob's Trailer Park 3 bedroom Price $19,500 SCHREIBER 39 accres of property in town located East . of the Rec Complex. Ideal for future development or the individual that likes privacy. ROSSPORT Only 30 minutes from Terrace Bay or 15 minutes from Schreiber. Ideal place to in- vest into a cottage lot on NICOL ISLAND or mainland lots. The fishing is excellent and the privacy is great. : Prices start at $15,000.00 per lot. Looking to invest in revenue property in Thunder Bay. At the present time we have semi detached both sides, 4 plex, six plex and numerous other investments located in prime locations. Call our office for further information. Juris Zdanovskis Broker 824-2933 Monique Gauthier Sale Rep. Marathon 229-0491 the end of the year has to be his decision." He also said such a plan could in- clude any number of alter- natives which are now be- ing considered. "Some of these (alter- natives) are.very simple and straightforward and some are very complex,"' Lavallet explained. **I am still developing the plan of action myself with a limited number of deputies...the date for its implementation has not been set, though we are closer to it than we were on May 3."' Smith came to Terrace Bay himself on that date, May 3, to address the mill employees. At that time he said something must be done because the complex has been running at a loss. "When we have a deci- sion in whole or in part that is approved by Mr. Smith, we will share it and get whatever help we can or need from the government, provincial or federal, at that time," Lavallet added. One possibility would be to sell part of the operat- ions or the whole mill, he admitted to the Committee, adding that "'the worst case scenerio" would be a com- plete shutdown. Pouliot asked Lavallet if he is optimistic, and the K- C President replied '*I per- sonally have to be optim- istic that we will find (a) combination of things and effect them so that Terrace Bay will be a viable enter- prise... That is my job and the reason I am here." Lavallet was also asked to whom he will go if he and Smith decide to reduce the company's work force in northwestern Ontario in the future. He replied he would first inform the K-C employees. "'Then the government, and ultimately, probably the media. I am sure we would want to get some facts in the papers. There is enough speculation."' "They have been good to you," one of the Com- mittee members reminded him. '*The duty is to return the favour."' The workers at the K-C plant were then mentioned at the meeting, and Lav- allet was asked how those employees can help them- selves in this situation. 'First, by continuing to produced quality, low or minimal cost tonnage at the mill while decisions are be- ing made," Lavallet re- sponded, adding that the workers should also be prepared to discuss the elements of any future plan plus any cost-saving ideas and changes that may be necessary in daily operat- ions at the mill. "We have a need for corporate profitability, for a return on invested assets at the mill that applies to every unit in the corpora- tion," Lavallet told the Committee. "I have some very specific goals for return on the $400 million Terrace Bay-Schreiber News, Wednesday, July 23, 1986, page 15 Lavallet explains K-C mill problems to committee worth of machinery that is sitting there...(we) are looking for a percentage return on the assets the cor- poration has invested." He pointed out that a number of cost-cutting ef- forts were made last year, along with the solicitation of ideas from employees at the mill, but it was not enough and the operation continues to lose "many millions of dollars."' "We notice that pulp prices are firming up,"' Pouliot told Lavallet. "The prices are somewhat better than they were at this time last year."' 'If we were to graph pulp rices as compared with rates of inflation on everything else during the last several years, pulp pricing is very far behind,"' Lavallet replied. *'We are projected to lose $28 mill- ion this year. It will not be a plus number because of any pulp increases we saw at April 1."' Lavallet said that these projected losses were the main reason behind the re- cent decision by Smith to come up with a plan for some changes at the mill before the end of 1986. '*One assumes that (you) have a plan of attack or op- tions or alternatives in mind," Pouliot explained. "Could you perhaps illus- trate in what direction, if any, you plan of options is directed?"' Though a few obvious possibilities were dis- cussed, Lavallet told Poul- iot that "I am not at liber- ty to share all the alternat- ives we are considering." He did add that Smith has committed to the company stockholders that "some- thing has to change, all the way through...closing all or part of the business. We cannot continue to run an unprofitable business at Terrace Bay." Lavallet did add later that the key word is not necessarily "profit."' 'It has to be profit-able at market pulp price," he said. "That is not break- even, incidentally. The profitability is not better than break-even."' He stressed, though, that any decisions must origin- ate from within the comp- any itself. 'Our corporate posi- tion, and my personal posi- tion, still is that we must make a business decision and it must be a business- driven decision," he said. 'Then we will involve as many people as are necess- ary for help."' As company President in Canada, Lavallet works out of an office located in Ter- race Bay. Pouliot is 'the MPP for Terrace Bay. TEL. 807-825-3863 U.7G. Painting & Cerarating P.O. BOX 1283 TERRACE BAY, ONT. POT 2WO CALL "GUY" FOR ALL YOUR PAINTING & DECORATING NEEDS CAMP FOR SALE White Sand Lake Box 30 1.3 acres 3 bedroom fully furnished Access by boat Reasonably priced Phone 825-9595 after 5:00 p.m. i Tilden Rent-a-car Service Spadoni Bros. Ltd. Cars & Trucks, daily, weekly, monthly & long term leasing. 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