Catalyst drive for improvement continues

    VANCOUVER, Aug. 27 /CNW/ - Catalyst Paper continued the year-long focus
on improving its competitive position with the announcement of further
staffing reductions. This downsizing of 85 employees, accomplished largely
through early retirement, is expected to deliver annualized savings of
$13 million on one-time severance costs of $16 million. A majority of the
reductions will take place at the Crofton and Elk Falls mills.
    "Competitive indicators for staffing levels in the industry show this
restructuring step will bring us within reach of best quartile benchmarks,"
said Richard Garneau, president and chief executive officer. "Market pressures
are not easing up and it is essential that we continue to take prudent and
timely steps to restore profitability while strengthening our position in key
product segments."
    Implementation of the total corporate overhaul program, including
downsizing of 565 positions, centralization of functions and the relocation of
the Vancouver office to Richmond is on track to be completed by year-end with
expected savings of $58 to $63 million annually on one-time costs of
$61 million.

    Catalyst is a leading producer of mechanical printing papers in North
America. The company also produces market kraft pulp and owns Western Canada's
largest paper recycling facility. With five mills located within a
160-kilometre radius on the south coast of British Columbia, Catalyst has a
combined annual capacity of 2.4 million tonnes of product. Catalyst Paper
Corporation common shares trade on the Toronto Stock Exchange under the symbol
CTL. The company is headquartered in Vancouver, B.C.

    Certain matters described in this release are forward-looking, including
statements with respect to anticipated savings and cost reductions, and
improvements in profitability. 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.

    %SEDAR: 00000638E

For further information:

For further information: Lyn Brown, Vice-President, Corporate Relations,
(604) 654-4212

Organization Profile

Catalyst Paper Corporation

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890