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An Update from Port Hawkesbury Paper Regarding US Trade M

Port Hawkesbury, Nova Scotia, Canada 23 July 2015 -- A letter from Tom Gallagher, President of Sales, Port Hawkesbury Paper:

As you are aware, two U.S. producers of supercalendered paper, Madison Paper Industries and Verso Corporation, filed a petition several months ago with the U.S. International Trade Commission (ITC) and U.S. Department of Commerce, seeking the imposition of countervailing duties on supercalendered paper imported from Canada. The petition identified four Canadian mills, including Port Hawkesbury Paper. The process is expected to continue on into late 2015; however, on July 28th, we expect to know the results of an interim ruling by the Department of Commerce, which could see the imposition of an interim duty levied on the Canadian mills. It is important to understand that the duties would impact not only Port Hawkesbury Paper, but other members of the supercalendered paper industry in Canada.

We are currently preparing for a site visit involving representatives from the Department of Commerce in early August, with whom we are fully cooperating. This visit will allow us to further prove the points of our legal case. We are also in regular communication with our customers and suppliers, who continue to support the mill.

We are working on this matter in close coordination with the Canadian Federal and Nova Scotia Provincial governments. Our legal teams are focused on vigorously defending this matter, as the case is without merit. Once we know more about any interim measures, we will advise our stakeholders.


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