Paper Excellence Canada has announced the indefinite reduction of paper operations at Catalyst Crofton, impacting approximately 75 employees. The company attributes this decision to market dynamics, inflationary pressures on raw materials and a lack of domestic fiber supply, which has resulted in substantial increases in operating costs.
Blair Dickerson, Paper Excellence’s Vice President of Public Affairs, said, “We recognize the difficulty this decision has posed to both our employees and the Cowichan Valley community. We will work to minimize negative impacts wherever possible.”
Despite an investment of nearly $50 million to improve paper operations and reduce the carbon footprint in January 2023, the C3 paper machine will remain indefinitely curtailed.
The mill’s pulp operations, which employ around 400 people, will continue during this curtailment, with a commitment to maintain cost competitiveness and align remaining operations with overall business strategies. The company will continue to supply products to its customers from other mills within the Paper Excellence Group wherever possible, maintaining its commitment to growing the specialty business.
The company appreciated the support of the federal and provincial governments and committed to respect the terms and conditions of the contribution agreements affected by this decision, collaborating with the appropriate government agencies in the next steps.
Based in British Columbia, Paper Excellence Canada is a diversified manufacturer of pulp and specialty, printing, writing and packaging papers in Canada, with a production capacity of more than 2.5 million tonnes per year.
