Richmond-based Catalyst Paper today announced the permanent closure of its Snowflake recycle mill in northeastern Arizona and its subsidiary, the Apache Railway Co.
The company stated that the decision follows extensive efforts to improve Snowflake's financial performance in the face of "intense" supply input and market pressures.
"The decision to close Snowflake is an extraordinarily difficult one given the exceptional effort that employees, unions and public officials have given to address the unique challenges at this mill," said Kevin Clarke, Catalyst's president and CEO.
"There were no stones left unturned," he added.
The company stated that, since acquiring Snowflake in 2008, Catalyst has implemented a number of measures to address cost pressures and market challenges such as:
- producing higher-value specialty paper grades at what was formerly a newsprint-only mill;
- making capital investments; and
- putting competitive labour agreements in place.
However the company stated that with newsprint demand down more than 10% annually since the end of 2008, old newsprint price volatility and higher freight costs to source reclycled paper from further afield, the mill's profitability couldn't be restored.
"While we did everything possible to prevent this outcome, employees, vendors and customers needed the certainty that today's announcement provides," Clark said.
