Paper Excellence Canada buys Catalyst Paper, which owns the Crofton mill. (File photo)

Catalyst Paper, including 3 Island mills, sold to Paper Excellence Canada

Company says sale will benefit employees and communitiues

Catalyst Paper, which owns the Crofton pulp and paper mill, has been sold to Paper Excellence Canada.

Paper Excellence is a BC-headquartered company with close to two million tonnes of pulp production capacity through five operating mills in Canada and two mills in France.

Catalyst Paper’s purchase by PEC, which is subject to regulatory review and final approvals, comes after months of joint efforts by the B.C. government, Catalyst Paper and potential purchasers to maintain the viability of the company’s operations.

How much Catalyst was sold for has yet to be released.

A press release from Catalyst states that the sale takes in all of its assets, including its three mills on the Island.

Catalyst employs about 1,500 forestry workers, including about 570 at the Crofton mill, as well as at its other two mills in Port Alberni and Powell River. Catalyst also generates more than $2 billion in annual economic activity in B.C.

RELATED STORY: AMERICAN DUTIES AGAINST CATALYST PAPER DROPPED

“When complete, this transaction will benefit all of our stakeholders, including our customers, employees, suppliers, the communities where we operate, and B.C.’s pulp and paper and forest products industries,” said Ned Dwyer, Catalyst’s president and CEO.

PEC will also assume all Catalyst’s obligations to its employees, including pension plans, as part of the deal.

The sale still requires the approval of the Supreme Court of British Columbia, as well as the approval of at least two-thirds of the votes cast by Catalyst shareholders at a special meeting that has yet to be held.

The sale is expected to close by the end of this year, or the beginning of 2019.

“Paper Excellence is evolving into a major player within Canada’s forest industry,” said Brian Baarda, Paper Excellence’s CEO.

“This announcement is a continued step towards Paper Excellence’s long-term growth plan within Canada and the province. With this acquisition, Paper Excellence is clearly demonstrating its commitment to British Columbia.”

The purchase of Catalyst follows quickly on the heels of regulatory changes made by the provincial government in July to protect the pensions of Catalyst retirees and workers in the event that only part of the company was sold.

RELATED STORY: PROVINCE STEPS IN TO PROTECT CATALYST PAPER’S PENSION PLAN

“Keeping these operations open and jobs in place shows what British Columbians can achieve when we come together and put workers, families and communities first,” said Premier John Horgan. “This purchase by Paper Excellence Canada is another major vote of confidence in our province and people. More importantly, it will help keep families and communities strong as we continue to revitalize our coastal forest sector .

Doug Routley, MLA for Nanaimo-North Cowichan, added that the Crofton mill is an important employer on the mid-Island.

“This purchase agreement will help ensure a brighter future for nearly 600 families on the mid-Island,” he said.



robert.barron@cowichanvalleycitizen.com

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Vandekamp moving on from Cowichan Capitals

Head coach returns to AJHL’s Grande Prairie Storm

75-year-old woman rescued from Cowichan Lake

Victim taken to hospital, but expected to recover

City of Duncan to consider a 3.16% tax increase for 2020

But council may consider delaying discussion due to COVID-19 crisis

Spike in thefts in Duncan has police issuing advice

Police have noticed an increase in property crime in the Duncan area… Continue reading

Nanaimo, Royal Jubilee to be Vancouver Island’s COVID-19 frontline hospitals

Other Island hospitals will be admitting COVID-19 patients and will be used in a support role

List of cancelled Cowichan Valley community events

An ongoing list of events that have been cancelled in the Cowichan Valley due to COVID-19

Look at hospitalizations, not recovery stats for COVID-19, B.C. professor says

Cases in hospital are a definitive count of people who have the novel coronavirus

B.C. First Nations want to launch fight of Trans Mountain pipeline approval

Last month, the Supreme Court of Canada decided not to hear five challenges about the pipeline

N95 masks on the way for Canada after 3M reaches deal with White House

The Trump White House had ordered 3M to stop shipping masks to Canada

COLUMN: The other graph that shows B.C. can beat COVID-19

Is the curve being flattened? data on hospitalizations provides a crucial answer.

Here’s how to talk to people who aren’t taking physical distancing seriously

Approach the conversation with empathy says conflict expert

B.C. clears more acute hospital beds as COVID-19 case growth slows

Province holding about 40% of beds empty for peak still to come

As 500K+ apply for emergency benefit, Trudeau says aid coming for Canadians left behind

Canada Emergency Response Benefit provides $2,000 per month

Most Read