<div><p>Catalyst Paper's board of directors approved a C$12 million upgrade of thermomechanical pulp (TMP) capacity at the Port Alberni, BC, mill and the restart of its directory machine No. 4 by mid-year (P&PW, Feb. 11, p. 7). The board also approved a new labor agreement incorporating an early retirement and severance package. Catalyst indefinitely curtailed PM 4, its highest cost machine, last September. Catalyst president/CEO Richard Garneau praised union locals CEP 592 and 686 for reaching "a landmark agreement that puts in place modern work practices and brings labor costs to competitive industry levels."</p><p>The five-year agreement reduces Port Alberni's costs by $45/tonne, and Garneau said he hoped similar contracts could be negotiated for all the company's mills. Garneau said that, to be competitive, the Port Alberni mill's annual municipal tax bill should be "C$2 million less than it is now." The company maintains the C$7.1 million it paid in property taxes in 2007 was three times the Canadian industry average and more than twice the BC average per tonne.</p><p>© 2008 Paperloop, Inc. Provided by ProQuest LLC. All Rights Reserved.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=27973230&bid=informcom" /></div><div id="copyright"><div>

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