BRITISH COLUMBIA - Catalyst Paper Corporation announced it is converting Powell River mill's paper machine 11 to produce a paper-towel product, a niche market manager Fred Chinn said has growth opportunity.

Catalyst board of directors signed off on the project earlier this month.

"This is an important next step following the revitalization improvements," Chinn said in a media release. "This moves us closer to a long and sustainable future."

To aid in that future, the mill recently announced the operation of a low-pressure steam turbine that generates 11 megawatts of electricity.

Chinn did not comment on how much money Catalyst was committing to converting the paper machine to produce the new product, but stated the overall improvement in the operation's safety and production over the past year contributed to the board's support.

The revitalization efforts come at time when Powell River's mill is facing more than $16 million annually in duties to the United States government on imports of its glossy supercalendared product.

The first roll of paper towel is expected in November 2016.