Atlantic Packaging closes Whitby newsprint mill
March 29, 2010 By Pulp & Paper Canada
Atlantic Packaging Products Ltd. closed its recycled newsprint mill in Whitby, Ont., effective March 19. …
Atlantic Packaging Products Ltd. closed its recycled newsprint mill in Whitby, Ont., effective March 19. The facility recycles more than 200,000 tonnes of used newspapers and magazines annually, and employed 151 people.
The company notes that the facility is unprofitable in spite of ongoing efforts to reduce operating costs and improve results. John Cherry, president of Atlantic Packaging Products Ltd. states: “We are disappointed that this step is necessary and deeply regret the impact it will have on our employees, their families and the community. Unfortunately discussions with various government levels and the union were not enough to offset the negative impact of the market conditions affecting the newsprint industry.”
The company cites a combination of factors for the shutdown, including a drastic decline in North American newsprint demand, the rising value of the Canadian dollar, increased costs for raw material, and an overcapacity in the newsprint manufacturing sector.
The Whitby facility has been in operation since 1990. According to Atlantic Packaging, it was Canada’s first 100% recycled newsprint plant.
It serves some of North America’s largest daily newspapers, and has gained recognition for its environmental record and the printability and reliability of its product.
Cascades Inc. purchased Atlantic Packaging’s tissue division in August of 2009, which included tissue operations at the Whitby newsprint facility.
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