Monday, 07 September 2015 07:07

Catalyst to indefinitely curtail R12 paper machine at Rumford mill

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catalyst logoCatalyst Paper (TSX: CYT) has announced its decision to indefinitely curtail the Rumford mill's No. 12 paper machine, which was temporarily curtailed on May 20, 2015.

This decision is fully market-related. North American paper markets continue to be challenging with a decline in demand for coated paper, which is manufactured on the No. 12 paper machine at the Rumford mill in Maine. Paper produced on No. 12 is used primarily in magazines, catalogues and commercial printing applications.

On May 20 the company temporarily curtailed the No. 12 paper machine and laid off 51 employees due to a decline in demand for coated paper. As transition and job loss mitigation stemming from this curtailment has already been completed, no additional layoffs are expected as a direct result of this announcement.

"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 remain committed to making the Rumford operation successful. Year to date, we've invested more than $10 million in upgrades to the mill, including major maintenance related to the recovery boiler. The company is also implementing a proven revitalization program to increase productivity, and developing new, higher-value products to optimize Rumford's production capability."

About Catalyst Paper
Catalyst Paper manufactures diverse printing papers such as coated freesheet, coated and uncoated groundwood, newsprint, directory, as well as market pulp. Customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With five mills across North America, Catalyst has annual production capacity of 2.3 million tonnes. Catalyst is headquartered in Richmond, British Columbia, Canada and is ranked by Corporate Knights magazine as one of the 50 Best Corporate Citizens in Canada.

SOURCE Catalyst Paper Corporation

For further information:

Investor Contact: Frank De Costanzo, Senior Vice-President and Chief Financial Officer, 604-247-4014

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