Sep 22, 2005. /Lesprom Network/. Norampac announces the permanent closure of paper machine №1 at its linerboard mill located in Red Rock, Ontario. This mill currently has two paper machines. Machine №1 was used to manufacture kraft linerboard and was producing approximately 150,000 short tonnes yearly. The stronger Canadian dollar as well as an increase in energy and wood fibre costs in Northern Ontario leave the Company no choice but to take this very difficult decision. “Norampac can no longer afford to operate this machine under the present market conditions,” said Marc-Andre Depin, president and chief executive officer of Norampac Inc. No decision has yet been taken regarding paper machine №2, which produces approximately 300,000 short tonnes a year. Norampac is currently considering all possible alternatives in order to optimize its profitability. “This mill is operational since 1945, and we will do all that we can, to prevent its closure. The contribution of all concerned parties will be required in order to ensure the long term viability of this mill,” concluded Mr. Depin. As a result of this permanent closure, Norampac expects to take a pre-tax charge of approximately $12 million during the second half of 2005, nearly $9 million of which is non-cash. These charges are estimates and will be finalized by year-end. The shutdown of machine №1 will take place tomorrow and will result in the loss of approximately 125 to 175 jobs. There are currently 435 employees at the Red Rock mill. Norampac owns eight containerboard mills and twenty-four corrugated products plants in Canada, the United States and France. With an annual production capacity of more than 1.45 million short tonnes, Norampac is the largest containerboard producer in Canada and the seventh largest in North America. Norampac, which is also a major Canadian manufacturer of corrugated products, is a joint venture company owned by Domtar Inc. and Cascades Inc.