Catalyst Paper reducing output at its Snowflake mill for eight days

By The Canadian Press

RICHMOND, B,C, - Catalyst Paper (TSX: CTL.TO) says it is cutting production at its Snowflake Mill in Arizona for eight days beginning Oct. 20 to remove 8,000 tonnes of recycled newsprint from the market.

The B.C. company said Friday the move will also cut old newsprint fibre requirements by about 10,000 tonnes.

The moves come as the slumping U.S. economy reduces print advertising at newspapers, affecting newsprint demand.

"We are watching demand and inventory levels very closely," said Richard Garneau, president and chief executive of Catalyst. "Existing orders and shipments will be managed accordingly to address delivery commitments and maintain efficient operations during the mill downtime."

Catalyst paid US$161 million in cash earlier this year to buy the Snowflake mill from BC-AbitibiBowater (TSX: ABH.TO), a Montreal-based newsprint giant.

Catalyst is a leading producer of specialty printing papers and newsprint, headquartered in Richmond, B.C.. The company also produces market kraft pulp and owns western Canada's largest paper recycling mill.

The company operates six mills in B.C. and the western United States and has a combined annual capacity of 2.8 million tonnes of production.

In trading Friday on the Toronto Stock Exchange, Catalyst shares fell seven cents to 75 cents, a drop of 8.5 per cent.