Investing, just not investing here

Someone said to me recently “The forestry industry is ‘investing’, it’s just not investing here.” That is certainly the case.

UPM Raflatac celebrates the opening of its new North American pressure sensitive labelstock manufacturing facility in Dixon, Illinois, approximately 100 miles west of Chicago. The new USD 100 million (EUR 70 million) facility will offer UPM Raflatac’s full product range of paper and film label products and features the company’s latest proprietary technical solutions in both the coating and finishing areas.

UPM closed its New Brunswick plant but is opening cellulosic biofuels facilities, paper mills, other value added wood products manufacturing all over the place. Including Illinois.

I am not naive. But I think that New Brunswick officials should have a candid discussion with UPM as to what are the roadblocks to investing here. Maybe they are insurmountable – but I hope they have asked the question.

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0 Responses to Investing, just not investing here

  1. nbt says:

    Good points. I think size of market is a challenge, and yes, corporate taxes and overall provincial economic attitude (i.e. believing in business and entrepreneurship and letting it thrive as opposed to intervening all the time).

  2. mikel says:

    The answer to that was pretty clear. They made (what to them) was a modest proposal to get a rebate on their energy costs, one of the biggest costs. The province said no dice, or at the very least dragged their heels. A year later they close down. That’s NOT a coincidence.

    It certainly has NOTHING to do with government ‘leaving it alone':

    “The Illinois Department of Commerce and Economic Opportunity (DCEO) is administering the business investment package. It includes Economic Development for a Growing Economy (EDGE) corporate income tax credits over the next ten years based on job creation; Employer Training Investment Program (ETIP) job training funds that will help enhance the skills of its workforce; a grant for infrastructure costs and site improvements; as well as additional financial benefits, such as sales tax exemptions and tax credits for job creation, resulting from the company’s location within an Enterprise Zone”