Catalyst Resubmits Proposal to Restart Closed Mill

Catalyst Paper, based in British Columbia, has announced that it has resubmitted a proposal that could allow for the restart of the company’s Elk Falls, B.C., paper mill. In a proposal to the mill’s union workforce, the company notes that the labor cost being offered is about $40 per hour. In a statement, the paper company notes that the proposal being offered reflects current market realities and includes changes to wages and benefits similar to those already implemented with management and staff employees.

In late February of last year, the company announced that a five-week curtailment of two of the paper machines, which were to end March 31, 2009, had been extended indefinitely. The downtime removed about 526,000 metric tons of newsprint and uncoated mechanical paper capacity on an annualized basis.

In looking to reopen the mill, Richard Garneau, president and CEO for Catalyst, calls for the union to work with the company to restart the mill. “With a competitive cost structure, there could be a future for Elk Falls mill and to that end we presented employees with a proposal that could lead to the restart of two specialty paper machines at the mill,” says Garneau. “Nonetheless, we also recognize that electing to take severance is a personal choice.”

“And, while there are no guarantees that we will be able to overcome fiber supply shortages or acquire the customer orders necessary to restart, we know the outcome for this mill and community if nothing is done,” Garneau adds.