RFP - Resolute Forest Products to idle pulp and paper operations at Calhoun mill

Resolute Forest Products (NYSE:RFP) has announced the indefinite idling of pulp and paper operations at its Calhoun mill in Tennessee, owing to significant financial losses incurred at the mill. Despite the current strong market conditions for both the pulp and uncoated freesheet paper that RFP manufactures, financial losses at the mill have persisted. The Calhoun pulp and paper operations generated an operating loss of $62M for the trailing twelve-month period ended September 30. In addition to these financial losses, the mill faced additional significant production upsets in November and December. Pulp and paper operations will continue for up to 60 days to ensure an orderly shutdown. RFP anticipates an improvement in its overall operating income, of approximately $35M to $40M, once the idling is complete. The decision will directly affect 350 hourly and salaried positions. Severance benefits will be provided to those directly affected. Tissue manufacturing and converting will continue

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Resolute Forest Products to idle pulp and paper operations at Calhoun mill