Resolute commits $270M for North American tissue paper plant

Jun. 2, 2015 – Pulp and paper producer Resolute Forest Products (RFP) says it will build a “state-of-the-art” facility to manufacture at-home, premium private label tissue paper, including bath and towel.

“This is an important step forward for Resolute as we execute on our growth strategy in a way that maximizes our ability to capture synergies and deliver superior value,” said Richard Garneau, president and CEO of the Montreal-based company. “We have been studying this option to diversify into the tissue business for quite some time, and we will continue to look at opportunities to expand our presence in this growing market.”

According to RFP, tissue demand has grown steadily for the past 20 years, and is expected to continue growing in the future.

Resolute’s tissue paper machine and converting operations will be built at the Calhoun mill in Tennessee. This US$270-million project represents the largest investment made by Resolute since 2010. At full capacity, the new tissue and converting facilities will produce approximately 60,000 metric tons per year of at-home, premium bath tissue and towel, focused on the private label market.

Construction is scheduled to begin shortly, with ramp-up expected to start in the first quarter of 2017.

It expects to add 105 new jobs for the tissue operation, in addition to 50 at the Calhoun pulp operation.

The tissue project is in line with the company’s capacity-building investments in markets with future growth opportunities, such as the complete refurbishment of the Ignace, Ont., sawmill and the construction of a new sawmill in Atikokan, Ont., which together are expected to add 275 million board feet to its annualized lumber capacity, says Resolute.