"The ongoing contraction of global paper markets and paper prices, particularly in Asia, are creating significant on-going financial losses at the mill," Paper Excellence explained.
Paper Excellence will indefinitely shut down production at its Catalyst Paper Tis'kwat paper mill in Powell River, in Canada's Province of British Columbia, the company informed on 1 December.
"Despite the best efforts of the mill's committed team of employees, the facility is simply not viable under the reality of today's market conditions", Paper Excellence added.
The Powell River mill runs two paper machines and can produce 334,000 tpy of newsprint and uncoated mechanical specialty paper grades for packaging applications. Production at the mill was already suspended on 22 November. At the time of idling, Paper Excellence had said that the suspension was temporary, citing serious problems in the supply chain, exacerbated by very heavy rains and flooding in British Columbia.
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