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Vol. 52 No. 47
Serving the Trading Areas of Wawa & District Hawk Junction & White River
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RenTech Closed Its Doors? I Hate To Say I Told You So
Article by Ken Warwick I am not generally one to say I told you so publicly. However, as anyone who has spoken to me in confidence regarding RenTech knows, this mill closure was so glaringly predictable, you would have to be dazed and confused to think this could have ended in any other way. The real tragedy in all of it is not that there is now a pellet mill that is completely uneconomical and will remain that way forever. It's not that the mill doesn't run properly after years of upgrading. The real tragedy is that the government funded RenTech to destroy a perfectly economical oriented strand board mill that could have been restarted when operating conditions warranted. Now there is nothing. That's money well spent. Sometimes I wonder if RenTech knew this was in the cards the whole time. RenTech changes business endeavours every few years and none of them appear to be successful. A review of this company's history makes you wonder. In 2013, they were going to build a $500 million plant in White River to produce jet fuel. White River's economy (GDP) is less than $30 million, yet RenTech planned to spend 17 times that amount on a plant. That just smells funny. Luckily for White River it didn't work out. Lucky for taxpayers too as they would have footed most of the bill. I guess we footed it in Wawa instead. When you think about what was proposed for Wawa's Pellet Mill facility, it should be immediately apparent that the business model would not work for any length of time. I mean seriously! RenTech planned to haul wood to Hawk Junction. Then they were going to compress it into pellets in the highest electricity cost jurisdiction in North
America. Once in pellet form they would load it on a train and send it to Quebec. They would offload the train onto a boat and ship the pellets 5,500 kilometers to North Yorkshire in England. Once in England, they would put the pellets back on a train to be delivered to a customer. The logistics are hilarious in their own right. That business premise, at its core, would have to assume that capable British business people could not get wood pellets closer than North Ontario to burn in North Yorkshire at the DRAX Power Facility at a lower cost sometime in the next twenty years or so. Please. This plant was dead on arrival! And like I said, it was totally obvious. Interestingly, if this was obvious to an average businessman like myself, should it not have been more obvious to our politicians who either showered them with tax dollars or hoped to get tax dollars from them at some point in the future. Michael Gravelle, a Liberal MP and Cabinet Minister who looks after the Northern Development and Mines portfolio and who also chairs the Northern Ontario Heritage Fund Corporation who gave RenTech their last $4 million in grant money had this to say on March 20th, 2015 at the time of the "investment" (See "waste" in the dictionary). “Rentech’s proposals for these two plants show innovation, business savvy and responsible management of resources. Our government is proud to support Ontario wood products and invest in these sustainable projects that will create jobs in Northern Ontario.” I would like add that the forest will certainly be sustainable since the business that needed to harvest the trees no longer has plans of doing so. As for the jobs; turns out they won't
be nearly as sustainable as the forest now is. Not to be outdone however, Mayor Ron Rody of Wawa had this to say on that same March 2015 day. "We are pleased that through the leadership of Minister Gravelle and MNDM that funding from NOHFC has brought this project to fruition. The community of Wawa welcomes the much-needed economic stimulus the RenTech Operation will bring to the Superior East Region. Above all it instills confidence, hope and a revitalized energy for our residents to invest in their community.” Of course I have something to add. This project never reached fruition and was destined to reach this point within a few years of this grant. A couple of weeks later I said as much to the Wawa EDC Chief Executive Officer following the 2015 EDC AGM at which Mayor Rody went up in front of a room full of business people and told them that he needed to find a way to tax RenTech. I rolled my eyes so hard they nearly popped out of my head. Why in the world would you publicly say you need to find a way to capture those revenues when the company was not profitable, hemorrhaging cash, and moving forward with a deeply flawed business model? I guess it is also worth mentioning that this egregious waste of tax money was the farthest thing from leadership, despite the Mayor's declaration. In two seconds I would have dismissed putting $4 million of my own money into this venture. But of course the government wasn't throwing away their money. They were throwing away our money. And that's much easier to do! Nonetheless, in spite of this predictable minor setback in Wawa's economic recovery and in spite of tax rates that are completely out of control when compared against other small Northern municipalities, Wawa will muddle on. Slowly of course! It would be too easy to fix the problems plaguing the business sector and lack of investment in the community. And when things are easy to fix, they remain just that way, easy to fix. God forbid any elected official does anything concrete to help things along.
Business Directory . . . . . . . . . . Pg. 6 Classifieds . . . . . . . . . . . . . . . Pgs. 9-11 Crossword . . . . . . . . . . . . . . . . . Pg. 11 Crime Scene . . . . . . . . . . . . . . . . Pg. 5 First United Church News . . . . . Pg. 12 Legion News . . . . . . . . . . . . . . . . Pg. 6 Library Column . . . . . . . . . . . . . . Pg. 4 Michipicoten Chronicles . . . . . . . Pg. 2 Pathways . . . . . . . . . . . . . . . . . . . Pg. 2 Sports . . . . . . . . . . . . . . . . . . . . . Pg. 3 Storytime . . . . . . . . . . . . . . . . . . . Pg. 8 Sudoku . . . . . . . . . . . . . . . . . . . . Pg. 9 Viking Voices . . . . . . . . . . . . . . . . Pg. 4
The Sault's Plumber - Caught With His Pants Down! Article by Barb Fisher, photo supplied. Nick Huckson has been in business for only nine months, but due to his distinctive advertising hook his plumbing business is known around the world. His unique truck decal and Nick's friendly wave invites everyone with plumbing problems to give him a call. "We are Fast, not half-Fast!" Nick is his family's third generation plumber and as a youngster started honing his skills being inspired by his grandpa Bill who started the business in the Sault and area many years ago. Besides the invaluable hands-on learning from the underground up, he has completed the apprenticeship training and now is a certified journeyperson. So far Nick has been able to manage his jobs by himself with casual help, and recently he has been securing the business for the next generation in bringing his younger brother on board. Being an innovator, when getting his business off the ground Nick knew that a catchy advertising slogan would make the difference, and in collaboration with Classic Signs Inc. the eyecatching truck decal motif was conceived. Within the first six weeks after posting the image on Facebook, the advertising
61 Mission Road Wawa, Ontario P0S 1K0 Tel: 705-856-2394 Cell: 705-856-5595 Fax: 705-856-4290 alainbouffard@missionmotors.com www.missionmotors.com
hook went viral on social media sites, Reddit, Mashable and The Chive, and Nick has been contacted to allow his story to be aired on the NBC Today Show, The Ellen Show and has been featured in Canadian Mechanical magazine. Nick has been wildly enthusiastic with the successful launch of his business. The two months following Christmas is traditionally a down time for small businesses such as his, but due to his humorous advertising gimmick he has had no layoff time, and is continually arranging job opportunities in the Sault and surrounding communities. You can follow Nick's business advertising strategies on his Facebook page "The Sault's Plumber" and if you are requiring professional work, at affordable rates, with top notch quality and amazing customer service, give Nick a call 705-943-9091.