Wood supply is not the problem for Global Sticks, says OFIA prez

Wood allocation is not to blame for the closure of a Thunder Bay wood novelty factory, said the president of the Ontario Forest Industries Association.

“That couldn't be farther from the truth,” said Jamie Lim, who maintains public criticism against Ontario's crown wood supply competition is unwarranted and has nothing to do with the halt in production.

Lim was told from an insider, with knowledge of the competition process, that the Vancouver-based startup applied “at the last minute” and was unsuccessful.

In mid-November, Global Sticks quietly laid off 70 workers and shut down production. In a release, president Reggie Nukovic said the cash-strapped company is restructuring and working with financial partners for a restart as soon as possible. Nukovic promised to pay workers and said an arrangement is being made with the province to secure a birch wood supply.

Lim said the biggest stumbling block is that Global Sticks only needs five per cent of the tree.

“It is illegal in Ontario not to be use 100 per cent of the tree that you're harvesting.

“You can't build a business plan if you're only using five per cent of the tree.”

Lim said there are examples of small forestry companies that have survived by striking partnerships to buy wood on the open market.

“A lot of people out there that think their fibre plan should include free fibre.”

Though Lim has no knowledge of the state of Global Stick's finances, she said it's a fair question to ask why Queen's Park would invest in a company without supplying adequate fibre?

“One would wonder why on one hand, they were getting $7 million in Prosperity and (Northern Ontario) Heritage Funding if they don't have a secure path to the wood that they specifically needed?”

The arrival of Global Sticks in the city two years ago, and its delayed startup until this past May, was greeting with much regional and national media attention.

Said Lim: “At the end of day, it's fair to add the same expectation on every user of our Crown fibre, you can't bend rules for one company because they're new and make every existing company that's operated in your province, and supported communities for generations, work through a different set of rules.”