Norpac to Shut Longview Uncoated Mechanical Paper Machine

North Pacific Paper Co. (Norpac), Longview, Wash., USA, this week announced plans to shut down one o its three paper machines. The targeted machine produces uncoated mechanical papers, with a capacity of 250,000 tpy. The machine is scheduled to go down in October 2017. 

According to a report this week by EUWID Pulp and Paper, Norpac made clear that the measure is in response to what it says are dumped and subsidized paper imports from Canada. The company said in a statement it would reorganize its operations to stay competitive in the face of Canadian government-subsidized competition. Norpac recently filed a petition with the U.S. International Trade Commission (USITC) to impose antidumping and countervailing duties on Canadian imports of certain grades of uncoated groundwood paper. 

In its announcement this week, Norpac said that it will expand capacity of the other two machines at Longview to serve its customer base. Also in a report this week, local radio station KLOG noted that Norpac has been in the midst of significant changes following its sale to One Rock Capital in October of last year. In May of his year, worker wages were cut by 10%, and retirement benefits were also cut. NORPAC has been struggling to find its footing in the face of light demand in its core markets, and due to competition from low-priced paper coming from Canada, according to the KLOG report.