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RockTenn closes “highest cost” containerboard mill in Matane, Que.

RockTenn has permanently closed its Matane, Que., containerboard mill, saying it was the highest cost mill in the RockTenn containerboard mill system. RockTenn acquired the Matane mill in May 2011 as part of the Smurfit-Stone acquisition. The…

RockTenn has permanently closed its Matane, Que., containerboard mill, saying it was the highest cost mill in the RockTenn containerboard mill system. RockTenn acquired the Matane mill in May 2011 as part of the Smurfit-Stone acquisition. The closure will put more than 100 people out of work.

The facility is equipped to produce 176,000 tons per year of recycled corrugated medium. RockTenn ceased production at the mill in late January 2012.

The company says the closure was necessary to balance its overall containerboard mill system capacity to match system demand, in light of major steps RockTenn is taking to realign system capacity and lower average system costs.

RockTenn intends to work with the City of Matane and other interested parties to determine the best alternative use for the site. The company says the cost savings from the closure of the Matane mill will be approximately $16 million per year.

The provincial and municipal governments have announced the formation of a working committee to explore ways to save the mill, which has been an employer in the region for 44 years.

According to the Le Soleil newspaper, the mill is for sale, but because of a non-competition clause, others in the field have little interest in the assets.