Richmond's Catalyst Paper (TSX:CTL) plans to shut down all its mills during the Christmas season as consumer demand for paper continues to be affected by the global economic slowdown.
The company's Snowflake, Crofton and Elk Falls paper mills will each take four days of downtime between December 19 and the first week of January. The Port Alberni mill will shut down for 12 days and the Crofton pulp mill will close for 11 days. All employees not required during this time will be laid off during the curtailment period.
Roughly 21,000 tonnes of newsprint production, 14,000 tonnes of specialty printing papers and 2,000 tonnes of pulp will be cut as a result of the shutdowns.
So far in the fourth quarter, the company has eliminated 70,000 tonnes of newsprint, 29,000 tonnes of specialty paper and 78,000 tonnes of pulp production as it adjusts its production to consumer orders and estimated demand.
Catalyst's share price range during the past week: between $0.25 and $0.30; 52-week high: $1.79; 52-week low: $0.24.