Resolute Forest Products has announced that it is permanently shutting down paper machine No. 10 at its Laurentide mill in Shawinigan, Quebec.

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 over 350,000 metric tons per year of commercial printing papers with two machines. Machine No. 10 produces 125,000 metric tons per year. This machine will cease production on November 26, eliminating nearly 111 jobs. The shutdown will not affect paper machine No. 11, which has an annual production of nearly 225,000 metric tons per year.

Resolute Forest Products 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 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 President and Chief Executive Officer 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,” stated Richard Garneau. “This is a major challenge and we are confident that we, with our employees, will be able to meet it.”

Source: Resolute Forest Products