MARCH 2010

Catalyst idles paper machine, de-inking plant

Catalyst Paper announced that its Crofton No. 1 paper machine will be curtailed indefinitely due to weak newsprint and directory paper demand. The machine, which produces 140,000 tons of commodity grades on an annualized basis, was temporarily idled.

In a related move, the company’s paper recycling facility in Coquitlam, which supplies the Crofton paper machines with de-inked pulp, will be indefinitely shutdown in mid-February. Approximately 70 employees – 36 at Crofton – will be laid off as a result of these curtailments.

“There was a steep decline in market demand for the products made at our Crofton paper mill in the past year and the consumption outlook for these commodity grades remains weak. Reduced recycled pulp requirements, combined with the higher cost and constrained availability of quality recovered paper are contributing factors in our decision to indefinitely close our paper recycling facility,” said Richard Garneau, president and chief executive officer.