Waswanipi’s Nabakatuk sawmill lost $2 million in its first 10 months of operations,far more than the loss predicted when the project was announced
Peter Gull, president of Waswanipi Mishtuk Corp., which built the sawmill togetherwith Domtar, did not return phone calls.
But Jeannot Gervais, director-general of the sawmill, confirmed that the loss was$2 million between June 12, 1997, when the sawmill officially opened and this March.
The sawmill employs 43 people, including 39 Crees.
“We have losses, but it’s normal,” explained Gervais. “People are less productive because they are less experienced. It’s progressing.”
Gervais said when the sawmill opened its doors, the company predicted a loss of $1 to $1.1 million for its first year of operations.
The owners of the sawmill, Mishtuk and Domtar, will have to swallow the loss, Gervais said.
Gervais said when he was brought in last November or December, the sawmill was already experiencing growing pains. Gervais worked for 25 years at Domtar and was director of labour relations for the region covering Val d’Or, Malartic and Sullivan.
“There was a problem when I arrived (at Nabakatuk). There still is somewhat of a problem,” he said.
Costs were out of control, quality of the product had to be improved and the workers needed training, said Gervais.
Since then, many changes were made, but more needs to be done, he acknowledged.
Gervais said he didn’t know the sawmill’s revenues in its first year and referredThe Nation to Mishtuk’s controller, Yvon Drouin. Drouin refused to release thisinformation without a written authorization from Gervais. Gervais then referred us toPeter Gull and promised to ask the Mishtuk president to give us an interview aboutthe sawmill’s first year. Gull did not call.
