May 28, 2009 / 9:08 PM / 9 years ago

UPDATE 1-Fortress to reduce wages by 10 pct at Landqart mill

* Expects total cost savings of C$5 million

* To curtail production at one of the machines

May 28 (Reuters) - Security and specialty paper maker Fortress Paper Ltd FTP.TO said it would cut wages by 10 percent across the board at its Landqart mill from June, and sees annual cost savings of over C$5 million from its restructuring efforts.

Fortress Paper said production on its specialty paper and low/medium security paper machine at the Landqart mill has been reduced to 3 shifts from 4.

However, the company said production on its bank note paper machine will continue at 100 percent capacity as the order book remains full and demand continues to be strong.

The company said it has also taken steps to cut personnel and overhead costs.

Shares of the company closed at C$7.33 Thursday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan)

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