Feb 14, 2008. /Lesprom.com/. Catalyst Paper announced a $12 million capital upgrade and the restart, by mid-year, of the # 4 paper machine at its Port Alberni mill. The investment in the mill's thermo-mechanical pulp facility and restart of the machine was approved by the company's Board of Directors. The Board also approved a $14 million early retirement and severance package associated with a new labour agreement. "The 2 union locals - CEP 592 and 686 - are to be commended for reaching a landmark agreement that puts in place modern work practices and brings labour costs to competitive industry levels," said Richard Garneau, president and CEO of Catalyst Paper. "Knowing we have the support of our employees means we can move forward with the thermo-mechanical capacity increase project and return to a two-machine mill, with a significantly improved cost structure." Catalyst indefinitely curtailed PM4 - its highest cost machine - on September 1, 2007. This followed repeated appeals to major stakeholders to change business conditions, including bringing the mill's property taxes in line with competitive jurisdictions. As the city's largest taxpayer, the Catalyst paper mill paid $7.1 million in 2007. Port Alberni's city council has approved a gradual reduction of major industry property taxes over 5 years. Catalyst is a leading producer of mechanical printing papers in North America.