Jan 20 (Reuters) - Pulp and paper maker Catalyst Paper Corp CTL.TO said it will cut production at three mills and lay off about 50 employees amid a weak paper market.
The move will remove 55,000 tonnes of newsprint from production in the first quarter, the company said in a statement.
“The slowdown in newspaper advertising along with restructuring by publishers in key paper markets is unprecedented, and conditions are expected to remain very challenging in the foreseeable future,” Richard Garneau, president and chief executive officer, said in a statement.
The Crofton No. 1 paper machine, which produces 140,000 tonnes of newsprint annually, will be idled on Feb. 1 and remain shut until market conditions improve, the company said.
The company will also reduce production at its Elk Falls mill in British Columbia and its Snowflake, Arizona mill.
Shares of Catalyst Paper were trading at 34 Canadian cents Tuesday on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Pratish Narayanan)