Valley says Boise committed to improve in areas of efficiency and environment.

Valley says Boise committed to improve in areas of efficiency and environment

"As good as we've become, we've got to get better."

That is how John Valley, Boise Cascade Canada's vice-president of administration and corporate affairs, describes survival in the changing pulp and paper industry in the years ahead.

"Our objective is to produce a cost-competitive, quality sheet using environmentally sound methods," he says. "It was our goal in the 1980s when we met the challenge of modernization and it's our goal in the '90s as we strive to meet even greater challenges within the industry."

Valley describes the Kenora pulp and paper mill as a good example of Boise Cascade's commitment to improvement. The mill produces newsprint, primarily for newspaper publishers, and some groundwood specialty printing papers. The production of 950 tons per day is mainly shipped to markets in the United States.

From 1982 to 1985 Boise's Kenora mill underwent a $180-million modernization which included rebuilding the paper machines as well as improvements in environmental controls. The second phase of the modernization included another $31 million spent to upgrade the Number 10 paper machine to state-of-the-art capability.

The new technology allows the machine to produce a variety of specialty newsprints which meet the demand for a stronger, smoother product necessary for today's high-speed presses and the increased use of color.

Extensive modernization has also meant upgrading for the workforce at the Kenora mill. Training programs, many of which were developed and implemented by Boise Cascade employees, have expanded career opportunities.

"The employees at our Kenora mill are creative, skilled and dedicated," said Valley.

The current employment level at the facility is 727 people.

In Boise Cascade's quest to "get better" and hold its share of the newsprint market in the U.S. midwest, the goals of cost-effectiveness, quality and environmental protection have led to new capital projects designed to give the company an even greater competitive edge.

The construction of a 400-ton-per-day thermo-mechanical pulp plant at a cost in excess of $89 million will be the next addition to the Kenora mill. The project was put on hold for 18 months in November due to the significant deterioration of the newsprint market and the subsequent reduction in newsprint prices. It had been scheduled to start up in early 1991, prior to the delay.

Further environmental controls will be in place by late summer with the construction of a $5-million precipitator designed to reduce air pollution from the mill.

A $2.5-million MAJIQ computer system installed in the Kenora mill's finishing and shipping departments early in 1990 is providing the latest technology for managing paper production and delivery and it is ensuring efficiency and accuracy in shipping.

A definite challenge for Boise Cascade in the next decade will be recycled paper.

Canadian mills have long enjoyed the competitive edge created by an abundant source of wood and affordable energy required to produce virgin wood fibre products. Now the rapidly increasing demand for recycled newsprint threatens to dramatically change the pulp and paper industry.

Valley said the industry usually takes five years to react to new challenges. This allows time to analyze the issue, conduct feasibility studies and commit capital. Recycling has caught on and gained momentum much faster than the industry analysts predicted, leaving pulp and paper producers in a catch-up position.

"A strategic commitment to a source of fibre as well as commitment to capital is essential before we can proceed with recycling plans," said Valley.

There is still a question of whether there is a sufficient supply of old paper available to Boise Cascade's Canadian mills and what manner of collection will be economically viable.

"The Ontario government, while trying to reduce the burden of landfill in the metropolitan areas, must take a defensive stand to protect the small Canadian virgin fibre mills against the negative effects of the change to recycle," said Valley.

"The government must ensure that the move to recycled paper products is based on sound, analytical support data while successfully influencing trade laws and the regulatory framework of the market to ensure the smaller Canadian mills have access to major recycle markets."

Boise Cascade Canada Ltd., a subsidiary of Boise Cascade Corp. of Boise, Idaho, recorded sales in 1989 of $417.1 million, with a pre-tax income of $79.7 million.

JIM HOPPER Contributor