The Forest Products Association of Canada (FPAC) applauds the federal government for pursuing trade action against China at the World Trade Organization (WTO) regarding duties on Canadian dissolving pulp. China had imposed anti-dumping duties of up to 23.7% on Canadian dissolving pulp in 2013 saying the imports were negatively impacting China’s domestic pulp market. The Chinese duties have resulted in significant loss of market for Canadian dissolving pulp producers including FPAC members and put a chill on future investment.
Catalyst Paper has announced that two of its machines have been turned off, as of last Friday, November 30th.
President and CEO Ned Dwyer said one machine at Powell River’s mill and one at Port Alberni’s mill have been shut down for a temporary ten-day period.
He noted that the temporary stoppage will affect around 140 employees at both mills, according to the company.
“The company is working to balance labour and production time to mitigate layoffs,” Dwyer said in a statement.
Dwyer also said the curtailment is due to the “sudden weakness in Asian markets”, where the company had increased its sales following recent U.S. trade actions.
“The shortage of economic fibre in the province and extremely high natural gas prices limit our ability to respond more effectively to these market-related changes.”
The company noted that the curtailment of the two paper machines will not affect existing customer orders or the company’s pulp production.