Catalyst Paper has announced a series of steps that it hopes will reduce costs and boost profitability. The steps include the indefinite closure of a paper machine by this coming September, eliminating 130 support positions, relocating the corporate office from Vancouver to Richmond, British Columbia; and centralizing some mill and corporate administrative functions in Nanaimo, BC.
The closure of one of the machines at the company’s Port Alberni division is expected to boost profitability for the company by $8 million. The close will eliminate 134,000 metric tons of newsprint, reduce its highest cost fiber requirements and result in the layoff of 185 staff and hourly employees additional to the workforce reductions announced. Lightweight coated and directory capacity will remain unchanged.