Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) have just announced the indefinite idling of its paper mill located in Thorold, Ontario. The facility, which employed over 100 workers, has an annual production capacity of approximately 197,000 metric tons of newsprint on one machine using 100 percent recycled furnish.
The difficult decision to proceed with the indefinite idling is driven by 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. Resolute recognizes the impact of today's announcement and believes conversion of the mill would provide a more sustainable future for the operation, its workforce and the surrounding community.
The company remains committed to customer service and delivery of high-quality products, and is working closely with customers to ensure a smooth transition.
The indefinite idling of the paper mill is effective immediately.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in over 70 countries. The company owns or operates some 40 manufacturing facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.
Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Visit www.resolutefp.com for more information.
SOURCE Resolute Forest Products Inc.