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Smurfit-Stone to Close Pontiac Pulp Mill in Quebec

Oct. 19, 2008 - Smurfit-Stone Container Corp. on Friday said that it will permanently cease production at its Pontiac pulp mill in Portage-du-Fort, Quebec. The closure of the mill is targeted for October 31.

"The mill produces Northern Bleached Hardwood Kraft paper-grade pulp, which is not core to the company's transformation strategy. The rapidly deteriorating conditions in the pulp market necessitate that the company take prompt action to avoid cash losses," said Steve Klinger, Smurfit-Stone president and chief operating officer.

"This decision reflects the current pulp market and in no way reflects on the hard work and dedication of our employees at this mill," said Klinger. "It is our intent to work closely with government authorities, local communities and unions as we make this transition."

The closure will result in a workforce reduction of 218 employees, with the company expecting to take restructuring charges in the fourth quarter 2008 totaling approximately $39 million, of which approximately $20 million is non-cash.

SOURCE: Smurfit-Stone Container




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