Catalyst Paper announced the indefinite closure of the groundwood pulp facility at its Port Alberni, BC, mill. The move takes effect September 30, 2006.
Groundwood pulp produced onsite will be replaced with de-inked pulp supplied by the company's Paper Recycling Division in Coquitlam, BC. This step will reduce fiber costs and help balance fiber requirements across divisions as the Port Alberni mill drives for alternatives to address uncompetitive costs unique to its operation.
"Efficiency and quality programs have driven the cost of deinked pulp down to the point where it is now part of an interim solution for our highest cost production at Port Alberni," said Ron Buchhorn, senior vice president, operations. "We know an indefinite shutdown is tough on the 60 employees and families affected by layoffs and we continue to work with our unions on options that can make production at the mill viable for the long haul."
With the difficulty the mill has with market conditions, Catalyst also is calling for the city of Port Alberni to provide sustained tax adjustments to bring the mill's property taxes in line with what competitors pay. The mill's property tax costs are nearly four times higher than the North American average of $6 per tonne of production.
In addition to producing printing papers, the company also owns the largest paper recycling facility in Western Canada.