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Resolute to Invest $105 Million at Calhoun Paper Mill

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Resolute Forest Products Inc., Montreal, Que., Canada, this week announced a $105 million upgrade to its Calhoun, Tenn., USA, pulp and paper mill, including the installation of a modern continuous pulp digester and other wood chip processing equipment. When completed by mid-2016, the project will help significantly lower the mill's costs, increase its pulp capacity, and improve its versatility.

"This investment will make a good mill even better," said Richard Garneau, president and CEO. "It will improve the mill's long-term competitiveness by lowering its costs and giving it the flexibility to adjust grade production to changing market dynamics. This is a significant capital project that reflects the company's commitment to this facility and confidence in the business environment in Tennessee."

In addition to creating approximately 50 new jobs to join the 480 employees currently at the mill, Resolute expects the project's implementation to produce efficiencies from better wood yield and lower steam and chemical usage. It will also increase the pulp machine's production output and maximize dryer utilization for internal purposes, giving the mill the versatility to manufacture a range of products, including specialty papers such as Resolute's Align™ uncoated freesheet substitutes, and value-added grades not currently in the product offering.

The Calhoun mill currently operates three machines and a pulp dryer and has a total mill capacity of approximately 609,000 metric tons of market pulp, specialty papers, and newsprint. Along with Resolute's other mills in the area, it sources its fiber from the competitive and stable U.S. southeast fiber basket.

"We received support for this project from the State of Tennessee, McMinn County, and the Tennessee Valley Authority, which has supplied power to the mill since its startup in 1954," Garneau continued. "These partners and our employees helped move the project forward quickly, and we appreciate their commitment to our Calhoun operation."

Bill Hagerty, commissioner of the Tennessee Department of Economic and Community Development, noted that "for more than 50 years, Resolute Forest Products has had a thriving presence in East Tennessee that can be felt far beyond the borders of our state. Tennessee's global momentum is fueled by companies that extend their brand on a worldwide scale, and with customers in nearly 100 countries, Resolute is one of those companies. I appreciate the company's decision to further expand and invest in Calhoun, and for the jobs that will be created for our citizens."

John Bradley, Tennessee Valley Authority's SVP of economic development, said that "TVA congratulates Resolute Forest Products on its announcement that adds new investment and jobs in Calhoun. Growth like this happens when TVA and economic development partners like the state of Tennessee, McMinn County, and other local leaders support existing business expansion."

The Calhoun mill has continuously produced paper products at its current site since 1954. During this period of time, the mill has been a contributor to the community through employment, the purchase of local goods and services, the payment of state and local taxes, charitable contributions, and community involvement.

John Gentry, McMinn County Mayor, explained the role of the operation in the county. "Resolute Forest Products has been an invaluable corporate citizen of McMinn County for more than five decades. The company could have chosen to place this expansion at one of their numerous locations, so it goes without saying that this $105 million capital investment makes a strong statement about the company's commitment to its Calhoun plant and the confidence it has in McMinn County's workforce."

Resolute Forest Products owns or operates more than 40 pulp and paper mills and wood products facilities in the U.S., Canada, and South Korea, and power generation assets in Canada.

 

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