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Catalyst aims for improved profitability Vancouver, British Columbia-based Catalyst Paper Corp. is making further efforts to cut costs and improve profitability. They include: — An $8-million improvement in annual profitability expected from the indefinite closure of Port Alberni Division’s PM 4 as of Sept. 1, 2007. This will displace 134,000 tonnes of the company’s least profitable newsprint business, reduce its highest cost fiber requirements and result in the lay-off of 185 staff and hourly employees additional to the workforce reductions announced. Lightweight coated and directory capacity will remain unchanged. Catalyst will also cut 130 support positions bringing the over-all workforce reduction to 480 in 2007, move the corporate office from Vancouver to Richmond, BC, and centralize some mill and corporate administrative functions in Nanaimo, BC. The overhaul is expected to save $16 million a year with one-time costs of $19 million. In a statement, Richard Garneau, the recently appointed president and CEO, blamed the moves on the high Canadian dollar and the decline in North American newsprint consumption. www.catalyst.com. PI |
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