Firm says market demand, rising freight and fuel costs factored into decision
MONTREAL—Resolute Forest Products says it plans to shutter a paper machine at its Shawinigan, Que., mill, eliminating over 100 jobs.
The firm says it’s permanently shutting down paper machine No. 10 at its Laurentide mill in the city north of Trois-Rivières, Que., after a drop in demand.
The company says it is aware of the impacts the closure will have on the employees and their families, and says it will work with union representatives and government to mitigate the effects “with a focus on retirement.”
“Resolute must prove that it is profitable with mills that perform well, which forces us to improve our competitive edge by focusing on our best assets and cutting costs,” Resolute president and CEO Richard Garneau said in a statement. “This is a major challenge and we are confident that we, with our employees, will be able to meet it.”
Garneau noted market demand and capacity, rising freight and fuel costs, a strong Canadian dollar and the high cost of fibre also factored into the decision.
Machine No. 10, which produces 125,000 metric tonnes of paper per year, will cease production Nov. 26.
The Laurentide mill currently employs 388 people.