Catalyst Indefinitely Idles Crofton PM, Coquitlam De-inking Plant

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Catalyst Paper, Richmond, B.C., Canada, this past week 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 metric tpy of commodity grades, was temporarily idled December 23 for the holiday period.

In a related move, the company's paper recycling facility in Coquitlam, which supplies the Crofton paper machines with deinked 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 CEO.

Catalyst Paper produces specialty printing papers, newsprint, and pulp. With six mills located in British Columbia and Arizona, USA, Catalyst has a combined annual production capacity of 2.5 million metric tons.