Atlantic Newsprint to Close Whitby Mill

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Atlantic Packaging Products, Toronto, Ont., Canada, this week announced that it has closed its Whitby Newsprint mill, following effort to reduce operating costs and improve performance results. The closure became effective March 19.

The Whitby facility has been in operation since 1990 and employs 151 salaried and hourly staff. Canada's first 100% recycled newsprint mill 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 metric tons of used newspapers and magazines annually, converting them into newsprint. Among its customers are some of North America's largest daily newspapers.

The company attributes the closure to 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 the newsprint manufacturing sector.

John Cherry, president of Atlantic Packaging Products, noted that "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."