White Birch Paper to Idle Stadacona Paper Mill in Quebec City

White Birch Paper's Stadacona paper mill in Quebec City.

Nov. 17, 2011 - White Birch Paper Company said that it will cease production temporarily at its Stadacona paper mill, in Quebec City, Canada, beginning December 9, 2011.

White Birch said that it will review the viability of the mill in light of significant manufacturing cost disadvantages specific to the plant, as well as the ongoing 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," said Christopher Brant, President, White Birch Paper Company.

"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," Brant said.

According to White Birch, deteriorating economic conditions, which include decreasing demand for newsprint and higher fibre costs, coupled with the inability to come to an economic agreement with union employees, have contributed to this decision.

The Stadacona mill has an annual capacity to produces 410,000 tonnes of newsprint, 95,000 tonnes of directory paper and 45,000 tonnes of paperboard.

White Birch Paper Company is a manufacturer of high-quality newsprint, directory paper and paperboard, with mills located in Canada and the United States, and the second largest newsprint manufacturer in North America.

SOURCE: White Birch Paper Company