Canada-based Catalyst Paper Corporation has reportedly signed a deal to sell its facilities to Paper Excellence Canada. As per trusted sources, the transaction would require the approval of at least two-thirds of the shareholders of Catalyst in a vote at a special meeting at the British Columbian Supreme Court.
For the record, the Richmond-based Paper Excellence Canada has a pulp production capacity of nearly two million tons at two mills in France and five in Canada.
Chief Executive of Catalyst Paper Corporation Ned Dwyer was reportedly quoted stating that the newly inked agreement will benefit suppliers, customers, employees, and communities where the company operates. Additionally, it will also benefit the paper, pulp, and forest products industries of the British Columbia, Dwyer added.
Reportedly, the government of British Columbia has stated that the deal secures livelihoods of around 1,500 provincial forest employees at the paper facilities of Catalyst located in Powell River, Port Alberni, and Crofton. Details of the agreement have not been released yet, cite sources.
Sources privy to the development claim that the United States had declared, in August, a final decision on countervailing and anti-dumping duties totaling 20.26% on the writing-grade paper and printing exports of Catalyst Paper Corporation. The company had reportedly termed the duties as without merit and punitive.
Apparently, the U.S. Department of Commerce imposed a preliminary countervailing duty of 6.53% on around 25 Canadian mills in May this year following an investigation that began in August 2017. Most of these mills are reportedly located in Ontario and Quebec. Sources claim that Catalyst Paper Corporation was slapped with a preliminary duty of 6.09%.
For the uninitiated, Canada is regarded as the biggest exporter of newsprint in the world with companies such as Catalyst Paper Corporation, Resolute Forest Products, and Kruger dominating the market.