Resolute Forest cuts 300 jobs from Ontario, Quebec newsprint operations
Dec. 17, 2014 – Resolute Forest Products will shut down 465,000 metric tons of newsprint production capacity in Canada through the permanent closure of its Iroquois Falls, Ont., newsprint mill and two paper-making machines in Baie-Comeau and Clermont, Que.
According to the company, the decision to reduce its newsprint capacity is a result of the “ongoing weakness” in the global newsprint business, higher costs, transportation challenges and the negative impact of campaigns by environmental groups. Meanwhile in Quebec, power costs and the spruce budworm infestation were key factors leading to the decision.
The Ontario mill employs 180 people and boasts an annual production capacity of 210,000 metric tons of newsprint. It is scheduled to close on December 22. The Baie-Comeau paper machine closed its doors on December 5, and the Clermont paper machine will close on or about January 30. About 120 jobs will be affected by the two Quebec closures.
“The decision to rationalize our newsprint capacity was difficult, as we are mindful of the impact it will have on affected employees,” said Richard Garneau, president and CEO. “Resolute remains committed to customer service and to the delivery of high-quality products and will work closely with customers to continue to meet their needs.”