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Elk Falls to close, says Catalyst
Richmond, BC-based Catalyst Paper will close the sawdust pulp and containerboard mill at its Elk Falls division in Campbell River, BC, effective November 30. A permanent loss of its traditional sawdust supply, energy and chemical cost inflation, high labor costs and an uncompetitive major-industry municipal tax have had a "severe impact", said the company. The drop in the US housing market also had a major effect. About 440 jobs will be lost. The sawdust came from an adjacent TimberWest Forest Corp. sawmill which recently closed. This along, with other shutdowns amongst Coastal BC sawmills and reduced supply from Interior BC sawmills, meant significantly higher operating losses at the historically low-return business. The closure will remove 200 000 tonnes of sawdust from the market and 131 000 tonnes of containerboard capacity. |
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