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Powell River paper mill to shut down, some workers offered jobs in Crofton, Port Alberni

The company says the facility is "simply not viable"; 206 workers are affected by the decision.
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Paper Excellence is shutting down operations indefinitely at its Catalyst paper mill in Powell River. GLACIER MEDIA

More than 200 workers are out of work in Powell River after Paper Excellence announced Wednesday it is shutting down operations indefinitely at its Catalyst paper mill in that town.

The company said the 206 employees affected by the decision will, where possible, be offered positions at Paper Excellence facilities in Crofton and Port Alberni.

It cited the contraction of global paper markets and paper prices in its decision to indefinitely shut down the site. The mill was temporarily shut down earlier this month, after being restarted in May.

In a statement, the company said that despite “the best efforts of the mill’s committed team of employees, the facility is simply not viable under the reality of today’s market conditions.”

The company said it is in discussion with governments and potential partners to look at other opportunities that might take advantage of the facility’s deep-water port, biomass boiler with power-generation capacity, and access to natural gas, electricity and water supplies.

Paper Excellence said the long-term goal is for the site to provide employment and economic activity.

Once the mill is shut down, the company says it will remove all fibre and chemicals and clean up the site to eliminate environmental risk.

A small team of employees will provide around-the-clock security and monitoring.