Catalyst to reduce capital spending
November 6, 2007 By Pulp & Paper Canada
Vancouver, BC — Catalyst Paper announced that its program of high return capital projects will be largely complete…
Vancouver, BC — Catalyst Paper announced that its program of high return capital projects will be largely complete in 2007. Capital spending to the end of the third quarter of this year was $68 million and is expected to reach approximately $90 million by year end, similar to the previous two years. Capital spending is expected to return to basic maintenance levels in 2008.
“With the majority of capital initiatives reaching completion this year, we are able to return to maintenance of business capital spending level in the range of $35 million in 2008,” Richard Garneau, president and CEO told investors during the company’s third quarter earnings call. “With a Canadian dollar trading at $1.07 today, it’s prudent to take a pause in our capital initiatives to manage our cash flow to protect the underlying business.”
The company also announced a $60 per short ton price increase for its Electracote Gloss and Satin paper grades, effective December 1, 2007. This brings the total announced increases to $180 per ton since July 1, 2007.
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