Resolute Forest Products reduces workforce at its Iroquois Falls, Ontario, paper mill by 50-70 workers, plans to permanently shut down the mill's PM No. 1 within six months due to profitability issues, says official

LOS ANGELES , October 29, 2013 () – Resolute Forest Products Inc. has cut the workforce at its paper mill in Iroquois Falls, Ontario, and aims to shut down one paper machine there within six months, a provincial official said, reported Timmins Press on Oct. 26.

The company confirmed that it had let go of 50 to 70 workers at the mill, MPP John Vanthof told The Daily Press on Oct. 26. He estimated that 240 to 250 workers had been employed at the mill.

In addition, Resolute plans to permanently shut down PM No. 1, which makes construction paper, within six months due to declining demand for the grade and profitability issues, he said.

The Montreal-based company hopes to keep the paper machine, which is more than 100 years old, running for another six months while they fill orders, said Vanthof, Timmins Press reported.

Attempts to contact representatives at Resolute Forest Products on Oct. 26, a Saturday, were not successful, reported the Timmins Press.

The mill in Iroquois Falls has two paper machines with 263,000 tonnes/year of total capacity to produce newsprint and commercial printing papers, according to the company’s website.

PM No. 1 did not operation continually last year due to a lack of orders and this year’s orders were even fewer, according to what Resolute told Vanthof, he said.

The mill’s other paper machine, PM No. 8, makes newsprint and benefited from a C$12 million to $17 million upgrade at the mill that the company undertook two years ago, said Vanthof, reported Timmins Press.

The primary source of this article is Timmins Press, Timmins, Ontario, on Oct. 26, 2013.

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