Catalyst moves forward with Powell River mill restructuring

    RICHMOND, BC, Feb. 18 /CNW/ - Catalyst Paper (TSX:CTL) today announced a
restructuring plan for the Powell River mill intended to improve its cost
competitiveness to face the challenges of a weaker economy and lower paper
    The detailed plan to deliver an estimated annual cost saving of $13
million was developed jointly with CEP Locals 1 and 76 in accordance with the
commitment made in the new collective agreement reached last December. The
mill's workforce will be reduced by 127 positions and a restructuring cost of
up to $12 million was approved for implementation of the plan.
    "With the significant decline in paper markets in recent months, finding
new ways to get work done more efficiently is a priority and the two union
locals - CEP 1 and 76 - have worked diligently with us to put a plan in place
that addresses today's very challenging marketplace," said Richard Garneau,
president and chief executive officer. "The $80 per tonne labour cost target
and the sustainable taxation of our mills based on a consumption of service
model are parallel priorities for the business. By making progress on both
fronts Powell River mill has a far better opportunity to be viable for the
long-term," Mr. Garneau added.

    Catalyst is the largest producer of specialty printing papers and
newsprint in Western North America and also produces market kraft pulp and
owns Western Canada's largest paper recycling facility. The company's six
mills have a combined annual production capacity of 2.5 million tonnes.
Catalyst is headquartered in Richmond, British Columbia, Canada and its common
shares trade on the Toronto Stock Exchange under the symbol CTL.

    Forward-Looking Statements

    Certain matters set forth in this news release, including statements with
respect to cost competitiveness and savings, labour costs and workforce
reductions, are forward looking. These forward-looking statements reflect
management's current views and are based on certain assumptions including
assumptions as to future operating conditions and courses of action, economic
conditions and other factors management believes are appropriate. Such
forward-looking statements are subject to risks and uncertainties that may
cause actual results to differ materially from those contained in these
statements, including those risks and uncertainties identified under the
heading "Risks and uncertainties" in the management's discussion and analysis
contained in Catalyst's fourth quarter and annual 2008 report available at

For further information:

For further information: Lyn Brown, Vice-President, Corporate Relations,
(604) 247-4713

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Catalyst Paper Corporation

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