Business News

Catalyst to curtail newsprint and market pulp production

Wednesday 21. January 2009 - Catalyst Paper announced today that, to match production with orders, it will take curtailments at its Crofton and Elk Falls mills in British Columbia as well as its Snowflake, Arizona mill. This will remove 55,000 tonnes of newsprint from production in the first quarter.

The Crofton # 1 paper machine, which produces 140,000 tonnes of newsprint on an annualised basis, will be idled on February 1 and remain shut down until market conditions improve, with layoffs affecting approximately 50 employees. Curtailments at the Elk Falls and Snowflake mills will vary in duration and will be aligned with order file requirements.

“The slowdown in newspaper advertising along with restructuring by publishers in key paper markets is unprecedented, and conditions are expected to remain very challenging in the foreseeable future,” said Richard Garneau, president and chief executive officer.

In a related move that reflects weaker pulp markets, the Crofton kraft pulp mill will add to a planned maintenance shut, with market-related downtime, bringing the total curtailment to 35 days and removing 38,000 tonnes of market pulp from production in the first quarter.

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2009 – Q1 Production Curtailment
(000 tonnes) Newsprint Pulp Total
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Snowflake (Jan/Feb/Mar) 20.0 – 20.0
Crofton (Jan/Feb/Mar) 22.0 38.0 60.0
Elk Falls (March) 13.0 – 13.0
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Total 55.0 38.0 93.0
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As a result of weaker paper markets in the fourth quarter of 2008, Catalyst took curtailments that removed 73,000 tonnes of newsprint, 27,000 tonnes of specialty printing papers, and 72,000 tonnes of pulp from production.