Catalyst Powell River has announced an extension to the current curtailment of its paper operations. The company had originally announced a curtailment from Saturday, July 20, through to Tuesday, August 6. In a bulletin dated Friday, August 2, Krista Cuddy, general manager for the Powell River operation, said she regrets to announce the curtailment of paper machines 10 and 11 will be extended to Monday, August 12. “The extension is a result of continued weakness in the market,” stated Cuddy in her bulletin. The bulletin further states that in conjunction with the company’s sales force, Catalyst will continue to pursue opportunities to grow in more sustainable product lines.
Catalyst Paper (TSX: CYT) today announced the decision to indefinitely curtail the No. 9 paper machine, one of three machines at its Powell River operation.
This decision is fully market-related as the company is facing a lack of orders and a declining market for the paper manufactured on paper machine No. 9, which was temporarily curtailed on October 27.
“This is a difficult, but necessary decision that supports Catalyst’s commitment to align mill operations and production with market demand,” said Joe Nemeth, President and Chief Executive Officer. “We are committed to making the Powell River operation successful for the long term, and will be working with our employees, leadership and the unions on a plan to make improvements to secure our sustainability.”
It is anticipated that this change will result in the loss of 50 jobs at the Power River operations and the Surrey Distribution Centre, Catalyst’s product distribution hub. The company will be working with employees and the Union locals on a transition plan to mitigate the impact of this decision.