Resolute Forest Products Closes Iroquois Falls, Ontario, Mill - Quick Facts

(RTTNews) - Resolute Forest Products Inc. (RFP, RFP.TO) announced the permanent closure of 465,000 metric tons of newsprint production capacity in Canada. The capacity reduction will be achieved with the permanent closure of the Iroquois Falls (Ontario) newsprint mill, as well as paper machine #1 at Baie-Comeau (Quebec) and paper machine #4 at Clermont (Quebec). It will permanently close on December 22, 2014, with closure-related activities running into January 2015.

The company said its decision to reduce newsprint capacity is a result of the ongoing weakness in the global newsprint business, exacerbated by fiber-related issues, including both availability and costs, as well as transportation challenges.

"Market conditions have had a major impact on our newsprint operations in both Ontario and Quebec, and the cost position of these operations has made them vulnerable to the structural decline in newsprint. There is another issue that cannot be ignored in these decisions: the ill-founded attacks of environmental activist groups," said Richard Garneau, president and CEO.