Catalyst Paper is permanently shutting its pulp mill near Campbell River, putting 440 people out of work.
It is the third major industrial shutdown for the area this year.
Garneau said the No. 1 problem with the future of the Elk Falls pulp operation is a shortage of sawdust.
The recent shutdown of a nearby TimberWest sawmill that supplied sawdust, and the slowdown in the U.S. housing market, have meant less lumber is being milled. Less lumber means less sawdust.
In April, Catalyst announced the shutdown of one paper machine putting 145 people out of work. In February, TimberWest announced the permanent closing of its Elk Falls sawmill putting 257 people out of work.
The Elk Falls mill is the second Vancouver Island pulp mill to shut down within the last two months.
Pope and Talbot's Harmac mill closed in June when that company went into receivership. The mill remains down while the receiver attempts to sell it.
Tuesday, July 15, 2008
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