A tough market for paper has meant no shortage of difficulties for Catalyst Paper Corp. (TSX:CTL) over the last few years, but Kevin Clarke is determined to turn the company around.
In a recent interview with Business in Vancouver, the paper producer’s new president and CEO said despite having a market capitalization of approximately $78 million against a backdrop of $1.7 billion in assets the company is not looking to be bought.
“Never say never, but I don’t think our stock price in any way reflects the value in this company, it’s crazy,” Clarke said. “But I think the primary equity holders wouldn’t sell it for that. I think the real opportunity for us is to … get our balance sheet cleaned up.”
Nearly four months have passed since Clarke took the helm at Catalyst.
His immediate strategy for the company has three main points: cost control, market diversification for Catalyst’s products and a “robust” communication strategy with employees.
That means eliminating the “rumour mill” within the company about possible plant closures in an effort to keep up morale, Clarke said.
During the interview, he also said he believes the paper industry is too large and fragmented, meaning its problems are not likely to be cured without further consolidation.
For Catalyst, that could spell a “strategic partnership” with another paper company.
“The reality, if we like it or not, and strategically it’s a requirement, we need to find a partner in the future and create a larger Catalyst.”
The company’s shares were valued at $0.20 at press time.
For more about Clarke and his plans for Catalyst check out this week’s print edition of BIV.