White Birch Paper Halt Production at Quebec City Mill

White Birch Paper Co., headquartered in Greenwich, Conn., has announced it is temporarily halting production at its Stadacona newsprint mill in Quebec City, Quebec, starting Dec. 9, 2011. The company says it will review the viability of the mill in light of significant manufacturing cost disadvantages specific to the plant as well as the deterioration of economic conditions in the newsprint industry.

“I am deeply saddened that we are forced to idle the Stadacona mill and am very aware of the hardship this will impose on our quality employees who work there. However, the operation of Stadacona is simply unsustainable in the current cost environment," Christopher Brant, White Birch Paper president, says.

"We need to resolve an integrated package of challenges quickly to be able to turn the situation around for the entire White Birch family of mills in Quebec. This is a difficult time for everyone at White Birch, and in our industry at large, but I remain confident that we can find a way to secure important new investment and emerge as a renewed company that provides sustainable long-term opportunities for our employees and value to our shareholders and the broader community in Quebec,” he continues.

Along with the continued slump in demand for finished newsprint, Stadacona, along with other recycled newsprint producers, have had the challenge of paying far higher prices for the ONP that is used as a raw material.