RICHMOND, B.C. - Catalyst Paper says it will cut 127 positions at its Powell River mill in British Columbia, about one-quarter of the workforce at the site.
The company says it's aiming to lower annual operating costs by $13 million in response to lower demand for paper used in magazines, flyers and other commercial printing.
Catalyst will take a restructuring charge of up to $12 million to reflect the cost of the downsizing at the Powell River mill, where there are three paper machines.
The company says it worked closely with its unions to develop the plan, in accordance with labour agreements reached last December.
The Powell River paper mill will continue to have 350 employees after the downsizing, a company spokeswoman says.
Catalyst chief executive Richard Garneau says the company is working to reduce its labour costs to $80 per tonne and to lighten its tax burden to a sustainable level.
He says that progress on both fronts puts the Powell River mill in better shape to survive in the long term.
