Apr 10, 2008. /Lesprom.com/. Catalyst Paper Corporation has completed its $161 million acquisition of the recycled newsprint mill in Snowflake, Arizona. A definitive agreement to acquire this operation from an AbitibiBowater subsidiary was announced in February, and its finalization represents the first extension of Catalyst's manufacturing base beyond Canada. The Snowflake mill, located about 290 km (180 miles) from Phoenix, Arizona, is one of the lowest-cost newsprint mills in North America. Its annual production capacity is 375 thousand tonnes of 100% recycled newsprint. This brings Catalyst's total newsprint production capacity to approximately 980 thousand tonnes, complementing its mechanical specialty paper capacity of some 1.1 million tonnes. "Increasing our recycled newsprint capacity strengthens our ability to meet demand for this grade in large urban regions," said Richard Garneau, President and CEO. "The Snowflake mill is well-located to serve growing population centres in western North American and is the freight-logical supplier to a number of key markets." The acquisition is expected to provide annual synergies of $10 million through cost-savings in purchasing and related services, as well as optimization of product distribution networks. It also provides Catalyst with fibre and currency diversification. Snowflake has a record of performance and profitability, reflecting positive labour relations and modern equipment. It is an energy self-sufficient mill with the potential to sell some excess electricity to the power grid. Snowflake's production will be marketed under Catalyst's Marathon newsprint brand. Catalyst is a producer of mechanical printing papers, headquartered in Richmond, British Columbia, Canada. The company also produces market kraft pulp and owns Western Canada's largest paper recycling facility.