West Fraser Timber Co. Ltd. is permanently closing a money-losing paper mill in Kitimat in northwestern British Columbia, and 535 people will lose their jobs. The January shutdown will cost $70-million and West Fraser said it will book a charge of $138-million in its third-quarter results, expected next week. The Vancouver company said the mill has long struggled with high costs and low returns, a situation exacerbated by a 40-per-cent drop in the net price of its products since late last year as the recession, the strong Canadian dollar and international competition batter the operations. WFT (TSX) fell 62 cents to $27.51.
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