RICHMOND, B.C. - Catalyst Paper says it's cutting back output again due to weak market demand for its products.

A total of 725 employees at two Vancouver Island operations will be affected this time.

Catalyst says it will indefinitely reduce pulp production at its Crofton kraft mill and extend downtime at its Elk Falls No. 2 and No. 5 paper machines beyond March 31.

The company says 375 employees at the Crofton mill and 350 employees at the Elk Falls mill will be affected by the latest moves.

The company said last week that it would cut 127 positions at its Powell River mill, also due to the economic slowdown that has affected consumer buying and advertising sales.

Catalyst Paper is a major producer of specialty papers used in magazines, flyers and printed inserts.

Its shares closed at 17.5 cents in Toronto, up 1.5 cents.