Catalyst Paper to Cut Production at All Mills

Nov. 26, 2008 - Catalyst Paper announced today that it will curtail production at all mills during the seasonally slow Christmas period, reflecting reduced demand expected in the first quarter of 2009.

According to Catalyst, curtailments of varying duration are planned beginning December 19 and extending into the first week of January 2009. This will remove an additional 21,000 tonnes of newsprint, 14,000 tonnes of specialty printing papers, and 2,000 tonnes of pulp from production in the fourth quarter.

The additional downtime brings the total announced fourth quarter curtailment to 70,000 tonnes of newsprint, 29,000 tonnes of specialty printing papers, and 78,000 tonnes of pulp, Catalyst said.

"Advertising and publishing activity slowed in key North American paper markets in November and is expected to remain weak for some time yet. This curtailment across our mills will ensure we adjust production to customer orders and manage inventory to an appropriate level going into 2009," said Richard Garneau, president and chief executive officer.

The Snowflake, Crofton and Elk Falls paper mills will each take four days of downtime; Port Alberni will take 12 days of curtailment, and the Powell River mill will be down for 13 days.

The previously announced downtime at the Crofton pulp mill will be extended by 2 days to 11 days, Catalyst said.

Crew requirements will be limited to essential personnel and employees not required during this time will be laid off, the company added.

Catalyst is the largest producer of specialty printing papers and newsprint in Western North America and also produces market kraft pulp and owns Western Canada's largest paper recycling facility. The company's six mills have a combined annual capacity of 2.8 million tonnes of production. Catalyst is headquartered in Richmond, British Columbia,

SOURCE: Catalyst Paper

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