Blue Heron Paper to close its 140,000 tonnes/year Pomona, Calif., newsprint mill due to sagging prices, demand
Mar 9, 2007 — Blue Heron Paper

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Original Headline: Press Release

OREGON CITY, Ore., March 9, 2007 (press release) — Blue Heron Paper Company regrettably has issued a WARN notice related to the indefinite closure of their 140,000 tonne/year, 100% recycled, newsprint mill in Pomona, California. "A combination of high waste paper prices, high energy prices and sagging price and demand for the products the mill sells has led to this unfortunate announcement," said Mike Siebers the Company president. Increased export demand for waste paper has driven up pricing in the Los Angeles basin over 30% in the last 5 months. In addition, continued lower demand for newsprint North America has caused newsprint prices to fall. The combination has resulted in the Pomona Mill becoming unprofitable. 'With no change in sight it doesn't make sense to continue to operate the mill at a loss," said Mr. Siebers. The Pomona Mill employs approximately 125 workers and has been in business since 1967. "Unless something improves dramatically and quickly the mill is expected to close on or about May 6th. It is unfortunate," said Mr. Siebers, "that such a good operation with dedicated employees may be coming to an end. Our employees did nothing wrong. These jobs are being exported along with the waste paper that provides the raw material resources the mill has used over the year."

Based in Oregon City, Oregon, Blue Heron Paper Company was formed in 2000 and produces newsprint and high brightness specialty paper products from a predominantly recycled fiber base. The Company is 100% employee owned through an ESOP (Employee Stock Ownership Plan) structure. The Company has two manufacturing operations, one in Oregon City and the other in Pomona. The Oregon City Mill is expected to continue to operate at full capacity.

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