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Catalyst Paper Announces Restructuring Plan
Richmond, British Columbia, Canada, 18 February 2009 – Catalyst Paper (TSX:CTL) today announced a restructuring plan for the Powell River mill intended to improve its cost competitiveness in response to a weaker economy and lower paper demand.

The detailed plan to deliver an estimated annual cost saving of CAD 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 CAD 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 – Communications, Energy, and Paperworkers Union (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 CAD 80 per [metric] ton labor 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,” 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 metric tons. Catalyst is headquartered in Richmond, British Columbia, Canada, and its common shares trade on the Toronto Stock Exchange under the symbol CTL.


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