VANCOUVER, Nov. 2 /CNW/ - Catalyst Paper announced today that its program
of high return capital projects will be largely complete in 2007 and capital
spending is expected to return to basic maintenance levels in 2008.
Capital spending to the end of the third quarter was $68 million and is
expected to reach approximately $90 million by year end, similar to the
previous two years.
"With the majority of capital initiatives reaching completion this year,
we are able to return to maintenance of business capital spending level in the
range of $35 million in 2008," Richard Garneau, president and chief executive
officer told investors during the company's third quarter earnings call. "With
a Canadian dollar trading at $1.07 today, it's prudent to take a pause in our
capital initiatives to manage our cash flow to protect the underlying
The company also announced, today, a $60 per short ton price increase for
its Electracote Gloss and Satin (No. 5 LWC) paper grades, effective
December 1, 2007, bringing the total announced increases to $180 per ton since
July 1, 2007.
Catalyst is a leading producer of mechanical printing papers in North
America, headquartered in Richmond, British Columbia. The company also
produces market kraft pulp and owns Western Canada's largest paper recycling
facility. With five mills at sites within a 160-kilometre radius on the south
coast of BC, Catalyst has a combined annual capacity of 2.4 million tonnes of
product. Catalyst's common shares trade on the Toronto Stock Exchange under
the symbol CTL.
Except for the historical information contained herein, the matters set
forth in this report are forward looking, including statements with respect to
general economic conditions, assessment of market conditions, demand for
products, pricing expectations, cash flow, anticipated savings and cost
reductions, profit improvements, restructuring costs, productivity, manning
levels, capacity and capital and maintenance expenditures. These
forward-looking statements are not guarantees of future performance and are
subject to risks and uncertainties that may cause actual results to differ
materially from those contained in these statements.
For further information:
For further information: Lyn Brown, Vice-President, Corporate Relations,