Twelve-month period ended December 31, 2015 Net sales of converted product increased primarily due to: •the full-year effect of shipments under the supply agreement with Fabrica. •an 8% increase in shipments from our Oklahoma site. Net sales of converted product were negatively affected by: •a 5% decrease in net selling price per ton due to a change in mix of converted products sold, including "away from home" sales associated with the Fabrica transaction, which typically have a lower selling price than "at home" sales. Net sales of parent rolls increased primarily due to: •a 51% increase in tons shipped due to the increased production in 2015 from our new paper machine project, as discussed above. •a 13% increase in selling price per ton.
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.