Atlantic Packaging Products closes its 200,000 tonnes/year Whitby, Ontario, newsprint mill, citing low demand, rising Canadian dollar

Mathew Kearney

TORONTO , March 19, 2010 (press release) –

After ongoing efforts to reduce operating costs and improve results at Canada's 1st 100% Recycled Newsprint facility we are announcing the closure of our Whitby Newsprint site.

The closure is effective March 19, 2010.

The Whitby facility has been in operation since 1990 and employs 151 salaried and hourly staff.

Canada's first 100% recycled newsprint plant is located in the Ontario lakeside community of Whitby on the eastern edge of Greater Toronto. Opened by Atlantic Newsprint in 1991, the plant recycles more than 200,000 tonnes of used newspapers and magazines annually, converting them into high-quality newsprint. Among its customers are some of North America's largest and most influential daily Newspapers.

In its relatively short history, the plant has gained recognition for its environmental record and the printability and reliability of its product.

A combination of factors 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 Newsprint manufacturing sector leaves us with no alternative but to close this unprofitable operation.

John Cherry President of Atlantic Packaging Products Limited 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. We will continue to treat those affected with respect and fairness. 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"

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