Resolute to Restart Dolbeau Paper Mill in Canada

Production of soft nip calendered (SNC and SCB) commercial printing paper will resume as soon as the recall of employees is completed.

Aug. 24, 2012 - Resolute Forest Products announced today that its paper mill in Dolbeau-Mistassini (Quebec, Canada) is to resume operations.

The former AbitibiBowater idled the Dolbeau mill in June 2009.

The decision to restart the mill follows the receipt of a notice of acceptance of the tender regarding the sale of electricity to be produced at the company's Mistassini cogeneration facility to Hydro-Quebec, Resolute said.

The restart of operations represents an investment of $20 million, Resolute noted.

Production of soft nip calendered (SNC and SCB) commercial printing paper will resume as soon as the recall of employees is completed.

The restart of the mill will provide direct employment for approximately 135 workers, the company said.

"We spared no effort to relaunch the Dolbeau mill because it is a good investment," said Richard Garneau, President and Chief Executive Officer of Resolute, who was in the Lac-Saint-Jean region to confirm the news.

"With today's announcement, Resolute will be more competitive than ever," Garneau added.

Resolute said that it is currently assessing its network of paper mills to ensure that production continues to be balanced.

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates 21 pulp and paper mills and 22 wood products facilities in the United States, Canada and South Korea. Marketing its products in more than 90 countries, Resolute has third-party certified 100% of its managed woodlands to sustainable forest management standards.

SOURCE: Resolute Forest Products Inc.

See related story:
- AbitibiBowater May Reopen Dolbeau Paper Mill After Workers Agree to Contract Changes (9/26/2011)