Paper Excellence Canada to indefinitely curtail paper operations at Catalyst Crofton mill

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[Richmond, BC]—Paper Excellence Canada today announced the indefinite curtailment of paper operations at the Catalyst Crofton facility located on Vancouver Island, BC.

Market dynamics, inflationary pressures on raw materials, energy cost opportunities, and a lack of local domestic fibre supply resulted in substantial increases in operating costs. These pressures have materially impacted the current and future financial viability of the paper operation.

This decision affects approximately 75 employees. “We recognize the difficulty this decision has placed on both our employees and the Cowichan Valley community,” said Blair Dickerson, Vice President, Public Affairs. “We will work to minimize negative impacts wherever possible.”

The mill’s pulp operations, which supports approximately 400 employees, will continue production during the indefinite paper curtailment. Going forward, the Crofton team will focus on making the remaining pulp operations cost competitive and aligned with our overall business strategies and direction.

Paper Excellence Canada will continue to supply our customers with products typically made at Crofton from other mills within the Paper Excellence Group where possible. The company remains fully committed to growing the specialty business.

Paper Excellence Canada thanks both federal and provincial governments for their efforts to support Catalyst Crofton’s paper operations. The company will respect the terms and conditions of all contribution agreements affected by this indefinite curtailment and will work with the appropriate government agencies on the next steps.

Paper Excellence Canada, headquartered in British Columbia, is a diversified manufacturer of pulp and specialty, printing, writing, and packaging papers in Canada with a production capacity of over 2.5 million tonnes annually and a workforce of more than 2,100. Paper Excellence is pleased to work in partnership with communities where we operate as a major employer of choice and market leader.

Source: Paper Excellence