Catalyst Closing Paper Recycling Mill in Arizona

Allan Gerlat, News Editor

August 6, 2012

1 Min Read
Catalyst Closing Paper Recycling Mill in Arizona

Catalyst Paper Corp. is closing its paper recycling mill in Snowflake, Ariz.

The Richmond, British Columbia-based Catalyst said in a news release the closure, scheduled for Sept. 30, also includes the mill’s subsidiary, Apache Railway Co.

Catalyst, which is reorganizing, said that the mill was hurt by continued weak newsprint demand, pricing volatility and higher freight costs resulting from needing to reach farther for an adequate supply.

The company said it made several attempts to improve the operation’s finances since purchasing it in 2008, including producing higher-value specialty paper grades, capital investments and competitive labor agreements.

"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 president and CEO.

The closure will mean some initial cash costs, which Catalyst expects to recoup from working capital and the sale of the mill’s assets. Catalyst took a $161.8 millionasset impairment charge in the second half of 2011.

About the Author(s)

Allan Gerlat

News Editor, Waste360

Allan Gerlat joined the Waste360 staff in September 2011 as news editor. He was the editor of Waste & Recycling News for the first 16 years of its history, and under his guidance the publication won 27 national and regional awards.

Before Waste & Recycling News, Allan worked at another Crain Communications publication, Rubber & Plastics News, which covers rubber product manufacturing. He began with the publication as associate editor and eventually became managing editor, a position he held for nine years.

Allan is a graduate of Ohio University, where he earned a BS in journalism. He is based in Sagamore Hills, in northeast Ohio.

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