RYAM Explores Potential Sale of Its Témiscaming Pulp and Paperboard Mill in Quebec

Oct. 16, 2023 - Rayonier Advanced Materials (RYAM) announced that it has engaged Houlihan Lokey as its financial advisor to explore the potential sale of its paperboard and high-yield pulp assets located at its Temiscaming site.

RYAM on Oct 7 temporarily idled the Témiscaming mill's paperboard operation and one of its high-yield pulp lines for 3 weeks to "optimize inventory levels and address lower-than-anticipated demand."

In an Oct. 13 press release about the potential sale of the Témiscaming mill, RYAM said, "This strategic move is aligned with RYAM's commitment to enhancing its operational and financial performance, optimizing its portfolio to align with its long-term growth strategy, and providing flexibility to pay down debt and reduce leverage. The engagement of Houlihan Lokey, a renowned global investment bank, underscores RYAM's dedication to a rigorous and diligent evaluation of its strategic options."

The Témiscaming mill, which is located in Quebec, Canada, produces high-purity cellulose, high-yield pulp, and coated paperboard. Its operations are powered by carbon-neutral hydroelectricity, and a renewable biomass power generation system on-site, which produces renewable energy for the Hydro Quebec grid.

The mill employs around 700 people.

RYAM is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in filters, food, pharmaceuticals, and other industrial applications. The Company also manufactures products for paper and packaging markets.

SOURCE: Rayonier Advanced Materials Inc. (RYAM)