Paper manufacturer Kruger will cease production of coated paper at its Trois-Rivières, Quebec mill for an indefinite period starting Oct. 30, resulting in a layoff of 400 of the 950 workers there.
Kruger officials said in a statement the move is being made because demand for coated paper in North America has dropped 35% compared to last year.
Kruger officials said said the Trois-Rivières mill will continue to produce newsprint and supercalendered paper. The company will maintain coated paper production at its mill in Wayagamack, Quebec.
Dan Walsh, vice president of catalog/publication papers at distributor Bradner Smith & Co., says that moves like Kruger’s will be the precursor to a tightening paper market.
“Little by little, the mills continue to shut down machines and make decisions that ultimately are shrinking supply, which will be felt when demand comes back,” Walsh said.