Norampac to Shut Red Rock Mill Indefinitely

Aug. 30, 2007 - Norampac today said that it plans to shutdown its Red Rock mill for an indefinite period of time due to unfavourable economic factors. The mill manufactures virgin linerboard and is located in North West Ontario.

According to the Communications, Energy and Paperworkers Union of Canada (CEP), Norampac told workers that the linerboard mill will close indefinitely as of November 23, citing high hydro and fibre delivery costs as the reason.

Nearly 300 employees will be affected by the closure.

"This decision was taken to mitigate the negative impacts of several economic factors such as growing fiber supply costs, rising energy costs and the strengthening of the Canadian dollar. Unfortunately, we do not have any other choice at this point than to suspend the mill's operations," said Marc-Andre Depin, president and chief executive of Norampac.

The Red Rock mill produces 300,000 short tons per year of unbleached kraft linerboard, which is sold primarily to Norampac's corrugated products plants.

During the shutdown period, several suppliers will insure the supplying of our corrugated products plants, Norampac said.

Norampac owns eight containerboard mills and twenty-six corrugated products plants in the United States, Canada and France. With annual production capacity of more than 1.45 million short tons, Norampac is the largest containerboard producer in Canada and the seventh largest in North America. Norampac, which is also a major Canadian manufacturer of corrugated products, is a joint venture company owned by Domtar and Cascades.

SOURCE: Norampac

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