Resolute Idled Calhoun Mill Pulp and Paper Operations
Rubber and Wood | 2021-12-17 07:18:04
Resolute has continued to accumulate significant financial losses at the mill, despite current strong market conditions for the products manufactured by the mill.
By Paul Ploumis
SEATTLE (Scrap Monster): Resolute Forest Products (RFP) announced its decision to indefinitely idle the pulp and paper operations at its Calhoun, Tennessee mill. The tissue manufacturing and converting operations will not be affected. Also, the adjacent distribution center will continue to operate as usual. The decision is likely to impact around 350 hourly and salaried positions at the mill.
Resolute has continued to accumulate significant financial losses at the mill, despite current strong market conditions for the products manufactured by the mill. Over the past 12-month period ended September 30th, 2021, the Calhoun pulp and paper operations delivered an operating loss of $62 million, before corporate expense allocation. The mill had faced significant production disruptions in November as well as December.
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Upon completion of the indefinite idling, RFP expects an improvement in overall operating income by around $35 million to $40 million. The company will engage government officials and other local authorities in order to mitigate the impact of the indefinite idling.
Remi G. Lalonde, President and Chief Executive Officer, RFP said that it was a very difficult decision for the company to idle the operations indefinitely, realizing that it would be really hard for the affected employees and their families.