Canada's paper producers forecast to lose over $1 billion in 2009
"The recession brought on such a rapid decline in demand that paper producers were unable to cut production quickly enough, leading to rising inventories and falling prices," said
Production is expected to fall by 14 per cent this year and decrease again next year, marking six consecutive years of decline. The negative effect of the recession on personal income and corporate profitability has reduced both consumer and business demand for paper products. In addition, the recession has accelerated the loss of advertising revenues and circulation at newspapers, leading to a reduction in demand for newsprint in
Lower prices and collapsing demand will lead to a loss of
One of the few notes for optimism is the federal government's recently announced Green Transformation Program. This program provides pulp and paper producers with access to a
For further information: Brent Dowdall, Media Relations, Tel.: (613) 526-3090 ext. 448, E-mail: [email protected]
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