Richmond, British Columbia, Canada, 29 August 2009 – Catalyst Paper (TSX:CTL) today announced that, given improved market conditions, it will restart one line of pulp production at its Crofton kraft mill on Vancouver Island. The northern bleached softwood kraft pulp mill was indefinitely curtailed in February 2009 – removing approximately 400,000 metric tons of annual capacity.
 
“Pulp markets have improved in recent weeks with stronger demand and pricing,” said Richard Garneau, president and chief executive officer. “Better markets enable the restart on one of the two lines of our kraft mill. But chip supply is limited and fiber availability is expected to remain challenging through the balance of this year.”

The restart is scheduled for early October and will result in 104 employees being recalled from layoff. Restart on the one line will add 210,000 metric tons of pulp capacity on an annualized basis. Production will continue as long as markets, mill costs, and fiber availability support it.

Catalyst Paper manufactures diverse specialty printing papers, newsprint, and pulp. Its customers include retailers, publishers, and commercial printers in North America, Latin America, the Pacific Rim, and Europe. With six mills strategically located in British Columbia, Canada, and Arizona, USA, Catalyst has a combined annual production capacity of 2.5 million metric tons. The company is headquartered in Richmond, British Columbia, Canada, and its common shares trade on the Toronto Stock Exchange under the symbol CTL. Catalyst is listed on the Jantzi Social Index and is ranked by Corporate Knights as one of the 50 Best Corporate Citizens in Canada.