Consumables

Resolute Announces Indefinite Idling of Paper Machine at its Calhoun Mill

Tuesday 12. March 2013 - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) announced today the indefinite idling of a newsprint machine at its Calhoun mill in Tennessee. The idling comes as a result of a decrease in demand for newsprint, coupled with high operating costs for the machine, which produced 215,000 metric tons per year.

The decision follows Resolute’s March 11 acquisition of the 49% interest in Calhoun Newsprint Company (“CNC”) owned by The Herald Publishing Company, LLC, its joint-venture partner.
The Calhoun mill, which presently employs 610 workers, will continue to operate the two specialty paper machines and the pulp dryer. The announcement will affect approximately 150 positions at the mill.
The Company recognizes the impacts this decision will have on the employees concerned and their families. Severance will be provided to affected employees according to the local labor agreement or the corporate policy for salaried employees.  Outplacement assistance will be made available through government agencies.