Resolute Forest Products’ costs for indefinitely idling kraft mill and paper machine in Fort Frances
November 27th, 2012 | Posted in Financial News, Mill Closures & Layoffs | 1 comment »
Resolute Forest Products estimates the company will incur a charge of approximately $12 million for severance and other termination benefits, and $5 million in other closure costs resulting from the indefinite idling of the kraft mill and one paper machine in Fort Frances, Ontario.
Total future cash expenditures associated with these items are expected to be approximately $14 million.
Resolute Forest Products also expects to incur approximately $32 million of non-cash asset impairment charges to reduce the carrying value of the assets to their estimated fair value.
The indefinite idling will reduce Resolute’s market pulp and specialty paper capacity by approximately 200,000 and 100,000 metric tons, respectively.
239 employees are affected.
Source: Resolute Forest Products
Related Posts
- Resolute Forest Products curtails paper making in Fort Frances for the rest of the year
- Resolute Forest Products extends shutdown in Fort Frances, Ontario
- Letter: Concerns about Abitibi
- Resolute Forest Products appeals tax rate in Fort Frances, Ontario
- Fort Frances mill soon to restart amidst rumours of job cuts
- Resolute cuts 45 jobs in Fort Frances, Ontario
- Fort Frances kraft mill downtime due to lack of qualified personnel
- 2 weeks downtime in Fort Frances
If they don’t know that $12million and $5million total $17million rather than $14million, then maybe Resolute is too stupid to survive in this sector.