Newsprint production from Powell River’s No. 9 paper machine will be curtailed indefinitely.
"This is a difficult but necessary decision that supports Catalyst's commitment to align mill operations and production with market demand," said Joe Nemeth, Catalyst Paper Corporation president and chief executive officer, in an announcement on Monday, December 15. "We are committed to making the Powell River operation successful for the long term and will be working with our employees, leadership and the unions on a plan to make improvements to secure our sustainability."
Eldon Haggarty, president of Local 1, Communications Energy and Paperworkers Union of Canada, said the announcement was not shocking to him but it is hitting home to many.
“No. 9 has been going to go down for so many years that it was just a common theme, but the reality is, today, it’s an indefinite curtailment,” he said. “It’s not a permanent closure. They are still looking at other products they may be able to run on it in the future. They are not writing it off but there is not much likelihood it is going to start up in the near future.”
The paper machine was revitalized earlier this year to allow it to operate using a different type of electricity because the gradient of electricity that had been used since the machine’s startup was no longer available. Haggarty said the innovation shown by in-house resources to economically upgrade the paper machine so it could continue to operate was a huge win.
“What was done was nothing short of a miracle,” he said. Hopes were that No. 9 paper machine, which appeared to be heading for extinction, could continue to produce paper.
Haggarty said the problem is that the market “just absolutely disappeared” in the high bright paper grades that No. 9 has been running.
The No. 9 curtailment is not unique. Seven paper machines in North America have gone down in the last year, according to Haggarty.
“This isn’t just a Powell River problem,” he said. “It’s a North American problem. It’s a newspaper industry issue.”
Haggarty said what’s left of No. 9 paper machine’s orders have been added to No. 11’s order book file so both No. 10 and 11 machines are full for the rest of the year and are looking good into the new year.
“No. 11 wouldn’t have been full if we hadn’t moved what was left of 9’s orders to help it.”
There will be notices going out to 36 Local 1 members by the end of the week. Haggarty said the workers are not terminated and can apply for employment insurance benefits. There is also opportunity for the displaced workers to move to Catalyst’s Port Alberni or Crofton mills.
“They have openings right now and they are allowing the Powell River members affected to have first crack at those jobs,” Haggarty said. “It’s a significant step in the right direction from Catalyst to look after its employees.”
The curtailment is affecting workers with up to 27 years’ seniority in Powell River’s Local 1. Current membership is around 115 members, so just shy of one-third of union’s membership is displaced by the curtailment.
Haggarty said there are still two paper machines running in Powell River and the power boiler system is producing power. He said efforts are being made to create efficiencies in both the paper production and energy sectors to improve the Powell River mill’s viability.
“I’m a firm believer that this mill is going to be continuing on into the future,” Haggarty said. “If I didn’t believe that I would have put my name in for the other two mills.”
According to records from the Powell River Historical Museum and Archives Society, No. 9 paper machine began making paper in 1957.
