Sioux Lookout Mayor Dennis Leney has “grave concerns” that 230 mill and forestry jobs in the area will be lost forever following a government decision to reject McKenzie Forest Product's business plan in the provincial wood supply competition.
Located in the nearby village of Hudson, the Buchanan Forest Products-owned sawmill has been plagued by startups and temporary shutdowns in recent years.
Leney said the decision has the potential to eliminate the Hudson mill's wood supply from the Lac Seul Forest. Without access to wood, Leney said company representatives have told him the mill will be closed permanently. About 180 mill jobs are at stake along with 150 jobs in woodlands operations.
“I have grave concerns about the impact this decision will have on the local economy – the loss of good-paying jobs and related spinoffs as well as a significant reduction to Sioux Lookout's assessment base and value.”
Leney said it represents a loss to the area's workforce, which may result in families moving away.
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