Resolute to Indefinitely Idle Mersey Newsprint Mill in Nova Scotia

Resolute Forest Products, Montreal, Que., Canada, reports that it has indefinitely idled the Mersey newsprint mill at Brooklyn, Nova Scotia. The facility, owned by Bowater Mersey Paper Co., Ltd. (BMPCL), is a joint venture between Resolute (51%) and the Washington Post (49%). The indefinite idling began Sunday, June 17.

"The mill produces newsprint primarily for export markets and is unable to compete due to declining prices in those markets, caused mainly by unfavorable currency fluctuations, said Richard Garneau, president and CEO of Resolute. "The decision to indefinitely idle production at the facility was difficult as we are mindful of the impact it will have on affected employees and local communities. We have worked diligently with the provincial government, our employees, union leadership, and other stakeholders, but simply could not overcome the inherent challenges."

The indefinite idling will reduce capacity by approximately 250,000 metric tpy of newsprint. Approximately 320 employees at the Mersey paper mill, associated woodlands, Oakhill sawmill, and Brooklyn Power Corp. will be affected by this action. Resolute will continue to work collaboratively with governments to ensure that impacted employees are provided support during this transition.

The company is currently assessing the feasibility of selling all of its assets in Nova Scotia, including its private timberlands, the paper mill, sawmill, and Brooklyn Power.

Resolute Forest Products owns or operates 21 pulp and paper mills and 22 wood products facilities in the U.S., Canada, and South Korea.

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