Paper Excellence Announces Indefinite Curtailment of Crofton Paper Mill Operations due to low demand from china & high costs

Paper Excellence announced the indefinite curtailment of its paper operations at the Catalyst Crofton facility on Vancouver Island in British Columbia, starting in early December 2022.

Paper Excellence explained that paper markets in China served by the mill have significantly weakened while there have been substantial cost escalations for chemicals, energy, and wood fiber used at Crofton. The intersection of these pressures has materially impacted the financial viability of the paper operation.

In a press release, the company said, “We expect to operate Crofton’s paper machines for 60 days following this announcement. We will be working closely with both unions as this decision affects about 80 Unifor employees and 70 PPWC employees. We recognize the hardship this will have on both our employees and the Cowichan Valley. We hope to minimize these impacts through union discussions that will consider secondments, utilization of earned time off and employment insurance. The mill’s pulp operations will continue production during the paper curtailment.”

Paper Excellence said it will be reaching out to assist customers with this transition and will continue to supply them with production from its Port Alberni mill where possible. In 2021, the company invested in repurposing its Port Alberni paper machines to manufacture food and packaging grades.

Paper Excellence is working with both Provincial and Federal Governments while it conducts studies at the Crofton facility to consider accelerating its conversion into natural food and packaging grades.

 

Catalyst Crofton Mill

The Crofton Mill has two paper machines and two pulp lines. The mill has the capacity to produce 320,000 tonnes per year of printing / packaging papers and 380,000 tpy of NBSK pulp.

Paper Excellence, headquartered in British Columbia, Canada, is a diversified manufacturer of pulp, printing and writing, packaging, and specialty paper that operates 7 facilities in Canada producing over 2.8 million tonnes annually.

To learn more, visit: www.paperexcellence.com.

 

SOURCE: Paper Excellence

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