Resolute Forest Products is permanently shutting down paper machine #10 at its Laurentide mill in Shawinigan, Que. The permanent shutdown comes after a drop in demand and an increase in market capacity of the commercial printing paper grade produced on PM10.
The Laurentide mill produces commercial printing papers on two machines, and employs 388 people. PM10 produces 125,000 tonnes per year. Its shutdown on Nov. 26 will eliminate about 111 jobs.
The shutdown will not affect paper machine #11, which has an annual production of nearly 225,000 tonnes.
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," stated Garneau.
Resolute has said it will work with union representatives and governments to mitigate the impact of the closure on employees and their families, with a focus on retirement. It will also see that as many employees as possible are reassigned to other company facilities.
Resolute owns or operates 22 pulp and paper mills and 22 wood products facilities in the United States, Canada and South Korea.