Effective with all new and existing orders with confirmed delivery dates of January 15, 2018 or later, Verso Corporation is increasing the transaction price of all Coated Economy Freesheet Sheets and Sheeter Roll grades by 4% to 6%. This includes, but is not limited to: Anthem Plus® sheets/sheeter rolls, Blazer Digital® sheets/sheeter rolls. The increase applies to all basis weights, bulks, finishes and related private label grades.
Catalyst Paper (TSX:CYT) today announced that it will seek an expedited review of the Final Determination by the U.S. Department of Commerce (DOC), dated October 13, 2015, to impose countervailing duties on the company’s exports of supercalendered paper to the U.S.
The DOC imposed preliminary countervailing duties on imports of supercalendered paper from four Canadian paper producers – Port Hawkesbury Paper, Resolute Forest Products, Irving Paper and Catalyst Paper – on July 27, 2015. Despite its statutory obligation to examine each of the companies, the DOC refused to examine Catalyst Paper and Irving Paper individually, and instead assigned them a preliminary “all-others” rate of 11.19%, which is the simple average of the preliminary rates assigned to Port Hawkesbury Paper and Resolute Forest Products.
Since August 4, 2015, based on this rate, Catalyst has deposited to the U.S. treasury approximately $1.3 million, representing sales of 17,000 tonnes of supercalendered paper to U.S. customers.
In its Final Determination, the DOC once again refused to examine Catalyst Paper and Irving Paper individually and instead assigned them a final “all-others” rate of 18.85%, which this time is a weighted average of the final rates assigned to Port Hawkesbury Paper and Resolute Forest Products.
“We are disappointed with this outcome,” says Joe Nemeth, President & Chief Executive Officer. “We will seek an expedited review of our case by the U.S. Department of Commerce as soon as possible.”
The Coalition for Fair Paper Imports — U.S.-based Madison Paper and Verso Corporation — alleges that the Canadian federal and provincial governments subsidized the four Canadian supercalendered paper producers. Supercalendered paper is glossy paper used in retail catalogues, flyers and magazines.
“Catalyst rejects the allegation that we’ve received government subsidies, and we’re confident that a full and fair investigation by the U.S. Department of Commerce would confirm this,” said Nemeth.