Resolute Forest Products is more and more scaling back activities in the declining publication paper sector to focus more on the tissue segment. The company now announced the closure of two paper machines producing newsprint and uncoated mechanical papers.

Canadian forestry group Resolute Forest Products is pursuing its transformation. The company has announced its decision to definitely shut down two publication paper machines at its Calhoun mill in Tennessee, USA. This will take a total of 356,000 tpy of capacities from the market, a company spokesperson said. PM 3 and PM 5 produce newsprint and uncoated mechanical paper and are to be taken offline no later than 30 September.

At the same time, the site's thermo-mechanical pulp (TMP) mill will be closed down. According to Resolute, the closure of a wood yard and a paper wrap line as well as reductions in the shipping department are also part of the restructuring measure. By contrast, market pulp capacity will reportedly increase by 10%.

The PM 4 at the Calhoun mill will continue to operate, Resolute says. It produces uncoated mechanical and bag paper grades with a capacity of 148,000 tpy.

A total of 222 employees are affected by the closures. The site currently employs 713 persons.

 

Source: euwid-paper.com

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