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Resolute to Permanently Shutdown No. 10 PM at Laurentide Mill

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Resolute Forest Products, Montreal, Que., Canada, this week reported that it will permanently shut down paper machine No. 10 at its Laurentide mill in Shawinigan, Que. The company noted that the permanent shutdown comes after an "important drop in demand and an increase in market capacity of the paper grade produced on machine No. 10."

The Laurentide mill, which currently has 388 employees, produces more than 350,000 metric tpy of commercial printing papers with two machines. Machine No. 10, which produces 125,000 metric tpy, will cease production on November 26, eliminating nearly 111 jobs. The shutdown will not affect paper machine No. 11, which has a production capacity of nearly 225,000 metric tpy.

The company said that it is aware of the impacts this decision will have on the employees concerned and their families and will work with union representatives and the governments to mitigate these impacts with a focus on retirement. "Management intends to make sure that all of the employees affected receive the necessary support, in compliance with the relevant collective agreement terms, and that as many employees as possible are reassigned to other company facilities," Resolute stated.

Resolute President and CEO Richard Garneau noted that market demand and capacity, the strong Canadian dollar, rising freight and fuel costs, and the continuing high cost of fiber also factored into management's decision. "Resolute must prove that it is profitable with mills that perform well, which forces us to improve our competitive edge by focusing on our best assets and cutting costs. This is a major challenge and we are confident that we, with our employees, will be able to meet it."

Resolute Forest Products is a producer of newsprint, commercial printing papers, market pulp, and wood products. The company owns or operates 22 pulp and paper mills and 22 wood products facilities in the U.S., Canada, and South Korea.


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