Resolute Forest Products Shutting Down Machine

MONTREAL—Resolute Forest Products is permanently shutting down the paper machine #10 at its Laurentide mill in Shawinigan, Quebec. The move comes after a drop in demand and an increase in market capacity of the paper grade produced on the machine.

The Laurentide mill, which currently has 388 employees, produces more than 350,000 metric tons per year of commercial printing papers with two machines. Machine #10 produces 125,000 metric tons per year. This machine will cease production on Nov. 26, eliminating about 111 jobs. The shutdown will not affect paper machine #11, which has an annual production of nearly 225,000 metric tons per year.

Resolute President and CEO Richard Garneau noted that market demand and capacity, the strong Canadian dollar, rising freight and fuel costs, and the continuing high cost of fiber also factored into management’s decision.

“Resolute must prove that it is profitable with mills that perform well, which forces us to improve our competitive edge by focusing on our best assets and cutting costs,” stated Garneau. “This is a major challenge and we are confident that we, with our employees, will be able to meet it.”