Resolute suspends wood-cutting operations in Quebec region

MONTREAL (Scrap Monster): Resolute Forest Products (RFP) has announced indefinite suspension of wood-cutting operations at Mauricie region, Quebec near Trois-Rivieres. The decision to defer forestry operations is primarily on account of high fibre costs and low market prices.

The company decision which came into effect on Friday, Nov 27^th is feared to affect nearly 180 jobs. According to company spokesperson, the decision is not expected to have immediate impact on jobs at the area sawmill. However, as current stockpiles get depleted, jobs may start getting affected, he added.

RFP is in talks with provincial government on rising fibre costs. According to the company, the high fibre costs have badly hurt the business. It is highly impossible for them to restart operations under the current situation. But the company may oblige to proposals to restart the operations, in the wake of a positive change in the existing condition.

Meantime, RFP had announced last week that it doesn’t plan to seek new Forest Stewardship Council (FSC) forest management certifications for its Canadian forests on fears that changes to designation process could limit wood supply. As per the announcement, the existing FSC certifications will be maintained, but not new certificate will be pursued. The company had reinstated the certificate for the Black Spruce/Dog River-Matawin forest in Northwestern Ontario.

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada.