Port Hawkesbury Paper to Appeal U.S. DOC Countervailing Duties on Canadian Supercalendered Mills

Port Hawkesbury Paper said that it plans to vigorously challenge the U.S. Department of Commerce's determination, which the company says is unsupported by the facts or the law.

Oct. 15, 2015 (Press Release) - The U.S. Department of Commerce announced [yesterday] that a duty of 20.18% will be levied on Port Hawkesbury Paper (PHP) as a result of a petition filed by Verso and UPM Madison against the Canadian supercalendered paper industry. The trade petition identified four Canadian mills, including Port Hawkesbury Paper, each of which will be subject to duties ranging from 17.87% to 20.18%. Port Hawkesbury Paper plans to vigorously challenge the Department of Commerce's determination, which is unsupported by the facts or the law.

Port Hawkesbury Paper's legal team will review in detail the decision made by the Department of Commerce, which has not yet been made available. The mill will appeal this decision and is in the process of exploring various options — including through the U.S. courts, the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA) – in close coordination with both the Canadian and Nova Scotia governments.

“We are only part way through a long process, and we are intent on proving that the imposition of duties is not supported by the facts or the law and is unfair to other Canadian mills in addition to ours”, stated Marc Dube, PHP Business Development Manager. “PHP remains highly confident in our ability to reduce these duties substantially, or eliminate them entirely, as part of the process.”

As a next step, the International Trade Commission (ITC) will make its final decision on the “harm” issue on November 18, 2015. The duty payments will be held in trust until the final order is released in early December.

“The PHP Mill team will continue to focus on business as usual by producing the highest quality paper in the safest and most cost-efficient manner possible,” says Dube. “We continue to make major capital investments in our mill, with an emphasis on ensuring our long-term sustainability and competitiveness.”

Port Hawkesbury Paper has the capacity to produce 400,000 tons of SCA++, SCA+, SCA and SCB papers. In addition, the mill has three thermomechanical pulp (TMP) lines capable of producing 650,000 air-dried metric tons annually. To learn more, please visit: www.porthawkesburypaper.com.

SOURCE: Port Hawkesbury Paper