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Resolute Forest Products Inc invests $270 million for paper mill expansion at Calhoun, Tennessee

Resolute Forest Products Inc invests $270 million for paper mill expansion at Calhoun, Tennessee

Introduction:

Resolute Forest Products Inc. announced to build a state-of-the-art facility to manufacture at-home, premium private label tissue paper, including bath and towel with an investment of $270 million.

Features:

Resolute's tissue paper machine and converting operations will be built at the Calhoun mill in Tennessee. 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 growing private label market. With market feasibility studies, technology selection and project engineering nearly complete, construction is expected to begin shortly, with ramp-up expected to start in the first quarter of 2017.

The decision to enter the tissue market and to build at its existing Calhoun site further capitalizes on Resolute's unique ability to capture synergies by:

  • • integrating Resolute's high-quality, low-cost, excess slush pulp for 100% of the tissue machine's fiber requirement;
  • • utilizing the full capacity of the tissue machine in a state-of-the-art converting operation;
  • • taking advantage of capital expenditure and fixed cost efficiencies by extending existing infrastructure;
  • • having access to an attractive and cost-competitive fiber basket; and
  • • being ideally located to serve Eastern U.S. markets.
     

The Calhoun mill also benefits from a strong working relationship with local labor unions. This investment will create 105 new jobs at the mill, in addition to the 50 positions associated with the continuous pulp digester.

This investment has also received support under existing business development programs offered by the state of Tennessee, the Tennessee Valley Authority (TVA) and the mill's home community in McMinn County.

Specifications:

Company Name Resolute Forest Products Inc.
Location Calhoun, Tennessee
Type New Facility
Estimated Cost $270 million

 

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