Vancouver Island paper mill curtails operations indefinitely

A paper mill in Crofton, B.C., will curtail operations indefinitely within 60 days, leaving about 150 employees without work for the foreseeable future.

According to Paper Excellence, which owns the Catalyst Crofton mill, the curtailment is in response to substantial cost increases and a weakened paper market in China, which the mill serves.

"The intersection of these pressures has materially impacted the financial viability of the paper operation," the company said in a news release.

In an emailed statement to CBC, B.C.'s Minister of Forests Katrine Conway said global markets for paper have been declining for over a decade as technology has changed the way we communicate.

North CowichanMayor Al Siebring saidthe news creates some uncertainty.

Because the curtailment is indefinite, he said it makes it difficult for employees to plan ahead and make financial decisions.

Paper Excellence said it realizes the hardship this will put on staff.

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

About 150 unionized workers are now without work, according to Paper Excellence. Unifor Local 1132, which represents just over half of those workers, says the company has been "extremely fair" as it moves forward with the change.

"Already we have some opportunities for about four months in Port Alberni," union president Travis Gregson said, referring to the Paper Excellence mill in Port Alberni, about 129 kilometres away.

However, he said, the closure will have a huge impact on the community.

"Anytime you take out 80 good jobs out of the economy there is a definite ripple effect felt, from the people who sell cars to the McDonald's."

Graham Kissack, vice president of environment, health and safety and corporate communicationsat Paper Excellence, said the company hopes to restart production at some point, and rehire employees impacted by the curtailment.

"We don't know when markets will start to recover and the market prices for the paper improves," he said.

"We don't know when inflationary pressures will start to pull back and some of these very, very high costs of good will decrease, but certainly we do hope to restart the site."

The company says the mill's pulp operations will continue during the paper curtailment.