MONTREAL, March 27, 2014 /CNW Telbec/ - Resolute Forest Products Inc.
(NYSE: RFP) (TSX: RFP) today announced a $105 million upgrade to its
Calhoun, Tennessee, pulp and paper mill, including the installation of
a modern continuous pulp digester and other wood chip processing
equipment. When completed by mid-2016, the project will contribute to
significantly lower the mill's costs, increase its pulp capacity and
improve the mill's versatility.
"This investment will make a good mill even better," said Richard
Garneau, president and chief executive officer. "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.
This is a significant capital project, which reflects the company's
commitment to this facility and confidence in the business environment
In addition to creating approximately 50 new jobs to join the 480
employees currently at the mill, Resolute expects the project's
implementation to produce efficiencies from better wood yield and lower
steam and chemical usage. It will also increase the pulp machine's
production output and maximize dryer utilization for internal purposes,
giving the mill the versatility to manufacture a range of products,
including specialty papers such as Resolute's Align™ uncoated freesheet
substitutes, and value-added grades not presently in the product
The Calhoun mill currently operates 3 machines and a pulp dryer and has
a total mill capacity of approximately 609,000 metric tons of market
pulp, specialty papers and newsprint. Along with Resolute's other mills
in the area, it sources its fiber from the competitive and stable U.S.
southeast fiber basket.
"We received support for this project from the State of Tennessee,
McMinn County, and the Tennessee Valley Authority, which has supplied
power to the mill since its startup in 1954," Garneau continued. "These
partners and our employees helped move the project forward quickly, and
we appreciate their commitment to our Calhoun operation."
"For more than 50 years, Resolute Forest Products has had a thriving
presence in East Tennessee which can be felt far beyond the borders of
our state," stated Bill Hagerty, Commissioner of the Tennessee
Department of Economic and Community Development. "Tennessee's global
momentum is fueled by companies that extend their brand on a worldwide
scale, and with customers in nearly 100 countries, Resolute is one of
those companies. I appreciate the company's decision to further expand
and invest in Calhoun, and for the jobs that will be created for our
"TVA congratulates Resolute Forest Products on its announcement that
adds new investment and jobs in Calhoun," said John Bradley, Tennessee
Valley Authority's senior vice president of economic development.
"Growth like this happens when TVA and economic development partners
like the state of Tennessee, McMinn County, and other local leaders
support existing business expansion."
The Calhoun mill has continuously produced paper products at its current
site since 1954. Over this period of time, the mill has been a
contributor to the community through employment, the purchase of local
goods and services, the payment of state and local taxes, charitable
contributions and community involvement.
John Gentry, McMinn County Mayor, explained the role of the operation in
the county: "Resolute Forest Products has been an invaluable corporate
citizen of McMinn County for over five decades. The company could have
chosen to place this expansion at one of their numerous locations, so
it goes without saying that this $105 million capital investment makes
a strong statement about the company's commitment to its Calhoun plant
and the confidence it has in McMinn County's workforce."
Cautionary statements regarding forward-looking information
Statements in this press release that are not reported financial results
or other historical information of Resolute Forest Products are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. They include our estimates of
the costs associated with, and the expected benefits from, the capital
project described above. Forward-looking statements may be identified
by the use of forward-looking terminology, such as the words "should,"
"would," "could," "will," "may," "expect," "believe," "anticipate,"
"attempt," "project" and other terms with similar meaning indicating
possible future events or potential impact on our business or
The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future
performance. These statements are based on management's current
assumptions, beliefs and expectations, all of which involve a number of
business risks and uncertainties that could cause actual results to
differ materially. The potential risks and uncertainties that could
cause our actual future financial condition, results of operations and
performance to differ materially from those expressed or implied in
this press release include: an increase in the costs associated with
the engineering and the implementation of the project; a change in
end-market conditions for our products, including those manufactured or
to be manufactured at the Calhoun mill; a change in raw material market
conditions; and the potential risks and uncertainties set forth under
the heading "Risk Factors" in item 1A to the annual report on Form 10-K
filed with the U.S. Securities and Exchange Commission on March 3,
All forward-looking statements in this release are expressly qualified
by the cautionary statements contained or referred to in this section
and in our other filings with the SEC and the Canadian securities
regulatory authorities. We disclaim any obligation to publicly update
or revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products
industry with a diverse range of products, including newsprint,
specialty papers, market pulp and wood products. The company owns or
operates over 40 pulp and paper mills and wood products facilities in
the United States, Canada and South Korea, and power generation assets
in Canada. Marketing its products in close to 90 countries, Resolute
has third-party certified 100% of its managed woodlands to at least one
of three internationally-recognized sustainable forest management
standards. The shares of Resolute Forest Products trade under the stock
symbol RFP on both the New York Stock Exchange and the Toronto Stock
Resolute and other member companies of the Forest Products Association
of Canada, as well as a number of environmental organizations, are
partners in the Canadian Boreal Forest Agreement. The group works to
identify solutions to conservation issues that meet the goal of
balancing equally the three pillars of sustainability linked to human
activities: environmental, social and economic. Resolute is also a
member of the World Wildlife Fund's Climate Savers program, in which
businesses establish ambitious targets to voluntarily reduce greenhouse
gas emissions and work aggressively toward achieving them.
SOURCE: Resolute Forest Products Inc.
For further information:
Rémi G. Lalonde
Vice President, Investor Relations
Media and Others
Director, US Public Affairs