Resolute Forest Products announced the indefinite idling of its paper mill in Thorold, Ontario, Canada. According to the announcement, the indefinite idling is effective immediately.
The facility, which employed over 100 workers, has a production capacity of approximately 197ktpa of newsprint on one machine using 100% recycled furnish.
Resolute explains the decision with the ongoing significant decline in North American newsprint consumption, coupled with the increasing cost of recovered paper. The company had already been taking downtime at the operation since mid-December 2016.
Resolute is collaborating with Stone House Investments Holdings Inc., an independent third party interested in converting Thorold to production of an alternative product.
In 4Q2016 Resolute Forest Products decreased sales and profitability.
Earlier Resolute Forest Products closed aquisition of a sawmill in Canada from Tembec
About Resolute Forest Products:
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The Company owns or operates nearly 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada.