For exporters selling products to our Southern neighbour, a low Canadian dollar can be a boon. Not quite the case for Corner Brook Pulp and Paper, however.
While the mill, owned by Kruger, does indeed sell its newsprint in U.S. dollars, a 70 cent loonie hasn't translated to a surge in profits because a decline in demand has all but wiped out the advantage. According to a recent report by CBC.ca, Kruger Vice President Daniel Archambault recently noted that demand for newsprint fell off by an approximate 12 per cent on world markets last year, and so while the position of the Canadian dollar is certainly a positive factor for the mill, it does little to address the structural issues inherent in the wider newsprint market. "At the end of 2015, our revenue in Canadian dollars were about the same that they were when the dollar was at parity, because the price went down drastically while the exchange went on the right side," CBC.ca reported Archambault as saying.
To keep a competitive edge, the mill is instead turning its attention to the 'value-added' it can offer customers.