Resolute to Permanently Shut Down One Newsprint Machine at Augusta Mill
May 5, 2016 - The president and chief executive officer of Resolute Forest Products, Richard Garneau, today announced the permanent shutdown of one newsprint machine at Resolute's Augusta, Georgia newsprint mill.
The capacity reduction tonnage was not disclosed.
In Resolute's first quarter earnings report, the company said, "This decision is motivated by the ongoing structural challenges in the newsprint market and is necessary to avoid costly rotating downtime."
Mr. Garneau added, "Long-term market conditions remain challenging for newsprint, particularly for our U.S. mills, which are especially vulnerable in the present U.S. dollar environment. We never take such permanent closure decisions lightly and we understand the impacts this action will have on our employees, their families, and the community. As is customary, the company will work with employee and community representatives to mitigate the impacts of this decision."
The Augusta mill has the capacity to produce 397,000 metric tons per year of newsprint on two machines. The mill employs about 250 people.
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, tissue, market pulp and wood products. The company owns or operates over 40 pulp, paper, tissue and wood products facilities in the United States, Canada and South Korea, as well as power generation assets in Canada. To learn more, please visit: www.resolutefp.com
SOURCE: Resolute Forest Products Inc.