Friday, October 17, 2008

Pulp Friction Update: Evergreen Sold!

photo source

Lee and Man Sold Evergreen to the "Worthy Pick Group" out of the British Virgin Islands.

Quotes and numbers are from todays Eureka T-S.

As the global economic downturn progresses, big timber industry firms with local facilities are now at odds.

Green Diamond (GD) and subsidiary California Redwood Co. (CRC) say that Chinese-owned Evergreen Pulp owes them millions of dollars for logs and woodchips they delivered to the facility. Likewise, Sierra Pacific Industries (SPI) says that Evergreen owes them big bucks for woodchips.

Yesterday, Evergreen CEO David Tsang said they have paid their bills, at least in part, as they loaded an estimated $6 million worth of wood pulp onto a ship destined for Hong Kong. “The economy of the world is putting us down a path where we need to survive,” he said.

'Join the club'. Green Diamond VP Neal Ewald has basically told Evergreen to suck it up, saying ”We understand Evergreen's cash flow and log inventory issues, but these are challenges that all forest product businesses routinely manage.”

The courts agree with the logging firms. Green Diamond has secured a lien in court against Evergreen for $516,000 worth of chips, logs and pulp. This means that GD owns said materials currently located at Evergreens facility. CRC has obtained a similiar protective order for $1.32 million. Sierra Pacific has a lien for $402,000 worth of wood chips.

Green Diamond currently has the distinction of being the biggest clear-cutter in the Redwoods and SPI is known for the same in the Sierra Nevada mountains. Evergreen is know for it's stinking plumes of toxic fumes over Eureka (You-Reek-a) and spilling toxic waste into Humboldt Bay and the Ocean.


At 10/17/2008 05:23:00 PM, Anonymous A said...

ooh la la!

and i was worried the chinese were going to start buying out companies like green diamond. i guess thats not in the cards anymore.

At 10/17/2008 09:19:00 PM, Anonymous Bolithio said...

Evergreen is know for it's stinking plumes of toxic fumes over Eureka (You-Reek-a) and spilling toxic waste into Humboldt Bay and the Ocean.

Come on man. That is not what evergreen is known for. That's like saying Obama is known for associating with terrorists. That statement is seriously misleading and not true. What toxic waste is being dumped into Humboldt Bay? You think that is some accepted practice? I live in Eureka - and it never smells like a pulp mill. At my dads in WA - there is a pulp mill five or so miles from his house and it ~always~ smells. You know whats coming out of that stack in Samoa? Evaporated water.

I guess I should just give up - but Im so frustrated that the minds of the area cant have an honest discussion about anything. Any political charge in anything and its one extreme or the other. All or nothing. I guess its just the American way right now - because it seems pretty wide spread.

At 10/17/2008 10:33:00 PM, Anonymous honest discussion said...

a) the reputation does come from somewhere. it used to stink like crazy. i remember loathing going to eureka as a kid purely because of the smell.

b) toxic waste was once at issue and seemed to be validated when the surfriders association sued the pulp mill successfully over the pulp mill outputs and the pulp mill had to at least extend the pipes farther out into the ocean. yeah, i dont know about any stuff in the bay...

At 10/18/2008 09:20:00 AM, Blogger John Doe #86 said...

I'm sorry you don't agree with me but that doesn't invalidate what I'm saying. Perhaps the burden of proof is on me but I think it's impulsive and biased to come right back saying that I'm not being honest.

You don't think the pulp mill has a reputation for stinking? When I used to be gone for months at a time and then return to eureka one of the first things I noticed was the smell, I assumed it was the pulp mill.

That, and pollution, is what the pulp mill is known for among many people I know. I don't know anyone who works there but I sympathize with them losing their jobs.

For some people that are not associated with the to the pulp mill, we only hear about it when they get fined for polluting.

I'm pretty sure they have spilled sludge or "black liquor" into the bay. The address below links to an article talking about the mill getting in trouble due to actions taken under previous owners. I can't find the reference right now to the black liquor being spilled into the bay.

One more thing- I'm not the most extreme out there. I actually believe that we need a strong timber economy. I'm not a zero cut person. However- extreme problems call for extreme measures. We're not going to middle-ground our way out of the timber bust and eco-system failure we are now facing here.

At 10/18/2008 09:25:00 AM, Blogger John Doe #86 said...

Ok, here's what I was remembering. Found the article in the NCJ. So the black liquor went into the ocean but other crap went into the bay. I can admit when I'm wrong and I wasn't being dishonest.


Specifically, Ard said that the company illegally disposed of "black liquor" -- a toxic by-product of the pulp-making process -- by dumping it into the mill's collection system, which discharges legally permitted waste into the ocean. In addition, she alleged that employees dumped spent chemicals into storm drains. On at least one occasion, she said, wastewater tainted by highly alkaline lime stores was allowed to spill into the bay.

At 10/20/2008 01:09:00 PM, Anonymous Bolithio said...

I didn't mean to imply you were dishonest. I really was trying to refer to the spin that is put on everything. And really, I cant blame you for that either - its pretty clear what your purpose of this blog is.

Just please consider the notion (at least every now and then) that all corporations, facilities, and businesses associated with the timber industry are not evil people who want to pollute the environment. I was under the impression that Evergreen was making big strides in changing old practices in the pulp field by utilizing new technologies. I think they produce like 90 percent of their own energy, and dont use the bleaching chemicals that are real nasty. Of course there are probably opportunities for improvement - as there are with anything. Just lumping them all up as evil corporations doesn't seem to help though.

With logging - it is true that past practices lead to various environmental impacts. Most things humans have done did. Still, awareness and advances in technology have drastically improved things - and will continue to. While it is true that the environmental movement brought many of these things to the table - it is the corporations who have paid for the mistakes of their fathers - and continue to do so.


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