Kruger Announces Newsprint Price Increases

GreenFirst Forest Products Inc. is pleased to announce that the Government of Ontario has announced that it is prepared to offer a loan of up to $17.2M (the “Loan Facility”) to support the Company’s plan to relocate and redevelop the Kenora sawmill over the next 3.5 years. Completion of the Loan Facility is subject to due diligence and negotiation of binding agreements. If completed, the Company would be able to draw down on the Loan Facility to cover 20% of its eligible project expenditures provided that the Company meets certain performance parameters including but not limited to job-creation targets and other project milestones. This strategic relocation would open the necessary expansion opportunities to ensure the mill is viable and sustainable.

Georgia-Pacific on Tuesday announced it plans to shut down several operations at its Camas mill and cut up to 300 jobs. Between 120 and 140 jobs will remain at the mill, which opened in 1885 and in the 1980s employed around 2,400. “The paper mill is the reason Camas exists,” said Peter Capell, city administrator. “The biggest concern we have about this is the people. They have mortgages, college payments, retirement. It’s something I wouldn’t wish on anybody.” The Atlanta, Ga.-based company and subsidiary of Koch Industries said the cuts stem from dives in demand for communications paper, mainly used in offices for printers, copiers and the like. “It’s definitely not a reflection of the employees, they have worked very hard and taken a lot of pride in running these assets and keeping them going, but it’s just a situation where it’s a declining marketplace,” said spokeswoman Kristi Ward. “People just aren’t using as much office paper as they used to.” Click Read More below for additional information.

Paper Excellence Canada is pleased to announce the resumption of kraft pulp operations at its Catalyst Crofton mill, bringing more than 300 workers back to their jobs. While market conditions allow for the restart of our pulp operations, the curtailment of paper operations at Crofton is being extended to the end of October. “In spite of challenges posed by exceptionally low pulp and paper prices driven by global market fluctuations, we are pleased to announce that we are resuming pulp production and reinstating a portion of our workforce at our Crofton mill. While this is a positive development, we will continue to assess the ongoing viability of maintaining Kraft pulp operations at Crofton to ensure it is cost effective to operate and consistent with our overall business strategies,” said Krista Cuddy, Catalyst Crofton, Interim Director – Operations & Integration.