MONTREAL—Resolute Forest Products Inc. said it plans to spend US$105-million on upgrades to one of its Tennessee pulp and paper mills over the next two years.
According to the Montreal-based firm, it plans to spend the cash on upgrades including a new continuous pulp digester and other wood chip processing equipment at it Calhoun Tenn., facility.
“This investment will make a good mill even better,” president and CEO Richard Garneau said in a release.
“It will improve the mill’s long-term competitiveness by lowering its costs and giving it the flexibility to adjust grade production to changing market dynamics.”
The company said the project will “significantly lower” the mill’s operating cost and boost its production capacity.
The mill currently operates three machines and a pulp dryer and has a total mill capacity of approximately 609,000 tonnes of market pulp, specialty papers and newsprint.
The facility has been continuously operating since 1954, and employs 480 people.
The upgrades are scheduled to be finished by mid-2016, creating 50 new jobs.