Resolute Forest Products announced the indefinite idling of the kraft mill at its pulp and paper operation in Fort Frances, Ontario. Around 240 employees are to be impacted by the idling.
This move includes the idling of paper machine number 5, which has an annual capacity of 105,000 metric tons of groundwood specialty printing paper. The kraft mill itself has an annual production capacity of approximately 200,000 metric tons of market pulp.
“The markets for these products are challenging and are expected to remain so,” said Resolute President and CEO Richard Garneau, who also pointed to the value of the Canadian dollar in relation to weak kraft pulp sales.
“The kraft mill situation is particularly difficult given Fort Frances’ operating configuration and the recent decision by a key customer to stop consuming the pulp supplied by Resolute to its mill,” continued Garneau. “Our kraft mill’s drying capacity is limited to about 40 percent of its production capacity, making it impossible to continue operating the mill in a profitable manner.”
Resolute Forest Products produces a range of products like newsprint, commercial printing papers, market pulp and wood products. The company owns or operates 22 pulp and paper mills and 22 wood product facilities in the United States, Canada and South Korea.
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