Vancouver Island paper mill to close indefinitely, at least 150 jobs affected

B.C.-based company Paper Excellence says it is indefinitely ceasing its paper operations at one of its Vancouver Island facilities in two months.

In an announcement Thursday, the company said its Catalyst Crofton facility, south of Nanaimo, B.C., will stop producing paper in early December, a move that's expected to affect at least 150 workers.

"Paper markets in China served by the mill have significantly weakened while there have been substantial cost escalations for chemicals, energy and wood fibre used at Crofton," said the company in a statement.

Paper Excellence says the 'indefinite curtailment' will affect about 80 Unifor employees and 70 Public and Private Workers of Canada union workers at the mill. 

Pulp operations at the mill are expected to continue, according to Paper Excellence.

"We recognize the hardship this will have on both our employees and the Cowichan Valley," said the company.

"We hope to minimize these impacts through union discussions that will consider secondments, utilization of earned time off and employment insurance."

OTHER CLOSURES AND GRANTS

This is the second Paper Excellence mill to indefinitely cease operations in B.C. within the last year.

In December, the company shut down its Catalyst Paper tiskwat mill in Powell River, B.C.

The closure affected around 200 mill workers.

In June, the federal government provided a $4.5-million grant to Paper Excellence to begin producing food grade papers at its mill in Port Alberni, B.C.

The company says it will try to provide customers with products from the Port Alberni mill "where possible" as the Crofton facility winds down.

"Paper Excellence is working with both Provincial and Federal Governments while it conducts studies at the Crofton facility to consider accelerating its conversion into natural food and packaging grades," said the company Thursday.