Atlantic Newsprint Closing Ontario Newsprint Mill

Atlantic Newsprint has announced plans to close its 100 percent recycled-content newsprint mill in Whitby, Ontario. The decision to shutter the mill comes after the company researched efforts to reduce operating costs and improve results at the location.

The mill, which has been in operation since 1990, is closing effective March 19, 2010.

The mill, opened by Atlantic Newsprint since 1991, recycled more than 200,000 metric tons per year of old newspaper (ONP) and old magazines (OMG) into newsprint.

A combination of factors, including a sharp decline in North American newsprint demand, the rising value of the Canadian dollar, increased costs for raw material and an overcapacity in the newsprint manufacturing sector forced the company to close the operation.

"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," says John Cherry, president of Atlantic Packaging Product Ltd.