Resolute Indefinitely Idles a Newsprint Machine at Calhoun Mill

Resolute is idling a newsprint machine at its Calhoun mill in Tennessee. The machine produced 215,000 metric tons per year.

March 12, 2013 - Resolute Forest Products announced today the indefinite idling of a newsprint machine at its Calhoun mill in Tennessee. The announcement will affect approximately 150 positions at the mill.

According to Resolute, the idling comes as a result of a decrease in demand for newsprint, coupled with high operating costs for the machine, which produced 215,000 metric tons per year.

The decision follows Resolute's March 11 acquisition of the 49% interest in Calhoun Newsprint Company ("CNC") owned by The Herald Publishing Company, LLC, its joint-venture partner.

The Calhoun mill, which presently employs 610 workers, will continue to operate the two specialty paper machines and the pulp dryer.

Resolute said that it recognizes the impacts this decision will have on the employees concerned and their families. Severance will be provided to affected employees according to the local labor agreement or the corporate policy for salaried employees. Outplacement assistance will be made available through government agencies, the company said.

The Calhoun mill produces commercial printing papers, market pulp, and newsprint and has an annual production capacity of 660,000 metric tons.

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 over 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 90 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three internationally-recognized sustainable forest management standards, including 65% certified to the Forest Stewardship Council (FSC) standards.

SOURCE: Resolute Forest Products Inc.