Feb 06, 2008. /Lesprom Network/. Fraser Papers reported financial results for the fourth quarter and year ended December 31, 2007. The Company generated a net loss of $20.8 million or $0.70 per share during the 4Q. Shut two high cost, uncoated freesheet paper machines, representing a combined capacity of 70 thousand tons per year at the East Papers operations in Madawaska, Maine resulting in anticipated cost reductions of approximately $10 million per year. Completed a $10 million capital rebuild of the recovery boiler at the pulp mill in Edmundston, New Brunswick, removing a bottleneck in capacity and reducing reliance on more expensive, market pulp. Increased shipments of specialty packaging and groundwood papers by a combined 20% while reducing shipments of commodity grades by 16%. "During 2007 we made significant progress toward the implementation of our strategy. We improved our product mix with higher volumes of specialty packaging and highbright groundwood paper and continued to provide outstanding quality and service to our customers. We made progress with the efficiency of our operations and reduced our energy consumption. However, continued increases in energy and fibre costs, combined with the strengthening Canadian dollar, continue to erode operating margins in the short term. While we were able to generate improvements in our operations to partially offset these cost increases, the full impact of many of the initiatives we have undertaken have yet to be realized," said Peter Gordon, President and CEO of Fraser Papers. "We are confident that the actions undertaken in 2007 have positioned Fraser Papers to benefit from improved pricing and lower costs in 2008." Fraser Papers is an integrated specialty paper company which produces a broad range of specialty packaging and printing papers. The Company has operations in New Brunswick, Maine, New Hampshire and Quebec. Fraser Papers is listed on the Toronto Stock Exchange.