Newsprint news sources lose trust, people lose jobs
Catalyst Paper has announced the permanent closure of its Snowflake recycle mill located in northeastern Arizona and its subsidiary the Apache Railway Company. The company made extensive efforts to improve the operation’s financial performance in the face of intense supply input and market pressures. Newsprint demand cited as the primary reason.
The operation is scheduled to shut production on September 30, 2012.
“The decision to close Snowflake is an extraordinarily difficult one given the exceptional effort that employees, unions and public officials have given to address the unique challenges at this mill, said President and CEO Kevin J. Clarke. “We understand and regret the difficult impact within the Snowflake community and surrounding region created by closure of the mill. I want to acknowledge and thank all who have given us their unwavering support and cooperation. There were no stones left unturned.”
Navajo County Board of Supervisors Chairman J.R. Despain released a statement regarding the closing, “The announcement that Catalyst will close its doors is a disheartening blow to our community and the families that rely on the mill for their employment. I am very disappointed that this has taken place despite all the efforts to address the problems that Catalyst has faced. The loss of approximately 308 employees in this small community will be very difficult for our region to absorb, and I trust that Catalyst will take on a respectful and professional approach to this difficult process. I ask the great people of Navajo County to reach out to the families and individuals who are directly affected by this difficult situation and help them through this time in any way they can.”
Catalyst implemented a number of measures since acquiring the Snowflake operation in 2008, to address market challenges and input cost pressures. These included production of higher-value specialty paper grades at what was formerly a newsprint-only mill, capital investment, productivity, quality and service improvements, full leverage of the mill’s environmental attributes, and competitive labor agreements. Catalyst has also explored a range of alternatives, including attempting to sell the mill on a going concern basis.
However with newsprint demand down more than 10 per cent annually since the end of 2008, old newsprint (ONP) price volatility and higher freight costs as procurement and sales have been forced to go further afield to source recycled paper supply and secure product orders, the mill’s profitability could not be restored.
“It is a shame to see these job loses around the country in every aspect of the industry,” said one long time industry insider. “We knew we were losing the people, the readers, but assumed they would stick with us no matter what.”
“Reduced quality of ONP as municipalities moved to single stream waste recovery combined with ONP price volatility driven by export markets were obstacles on the input side. Added to these challenges are the protracted demand decline for recycled newsprint and other printing papers. While we did everything possible to prevent this outcome, employees, vendors and customers needed the certainty that today’s announcement provides,” Mr. Clarke said.
Catalyst Paper manufactures specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With four mills, located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.8 million tonnes. The company is headquartered in Richmond, British Columbia, Canada and is ranked by Corporate Knights magazine as one of the 50 Best Corporate Citizens in Canada.