Jul 07, 2008. /Lesprom.com/. Catalyst Paper announced the permanent closure of the sawdust pulp and containerboard operation effective Nov. 30, 2008 at its Elk Falls Division in Campbell River. The decision reflects the severe impact of a permanent loss of traditional sawdust supply, as well as significant energy and chemical cost inflation, high labour costs and the heavy toll being taken by the uncompetitive major industry municipal tax levied on the Elk Falls mill. "Our Elk Prime pulp product is made primarily from sawdust," said Richard Garneau, President and CEO. "With the permanent closure of the TimberWest sawmill in Campbell River, other coastal sawmill shutdowns, and the reduced sawdust supply from the Interior, it has become clear the Elk Falls sawdust pulp and containerboard mill operating losses would increase significantly if we don't take this action." Closure of the Elk Falls pulp mill will remove 200 thousand tonnes of annual sawdust pulp and 131 thousand tonnes of annual containerboard capacity.