Construction of a cellulose filament plant
and optimization of the paper mill
MONTREAL, Jan. 15, 2020 /CNW Telbec/ - Resolute Forest
Products Inc. (NYSE: RFP) (TSX: RFP) today announced the
construction of a commercial plant specializing in the production
of cellulose filaments, a new sustainable biomaterial derived from
wood fiber, at its Kénogami paper mill in Quebec as well as the optimization of the
mill, at a total cost of $38
"Our investment in cellulose filaments represents an opportunity
to enter into non-traditional growth markets," stated
Yves Laflamme, president and chief
executive officer, during a press conference attended by government
representatives, local dignitaries and employees. "The cellulose
filament and Kénogami mill optimization projects will create
synergies within our network of operations in
Cellulose filaments are derived from wood fiber that is
mechanically processed without chemicals or enzymes. They are
manufactured entirely from renewable sources, resulting in a low
carbon footprint. Offering a wide variety of uses and a number of
benefits, the filaments can be integrated into commercial and
consumer products from many industries, including transportation,
construction and energy, increasing the resistance and durability
of those products.
The new $27 million project will
create eight jobs in the startup phase slated for 2021, and a total
of 23 jobs once the plant reaches its full production capacity of
21 metric tons per day. These new jobs will be in addition to the
200 existing positions at the paper mill.
Resolute will also invest $11
million to enhance the Kénogami paper mill's short-term
competitiveness by modernizing equipment in order to produce
high-grade SCA+ supercalendered paper, allowing the mill to access
more favorable markets. The mill has a production capacity of
133,000 metric tons of specialty papers per year.
The cellulose filaments will be marketed with the help of
Performance BioFilaments Inc., a joint venture established in 2014
by Resolute and Mercer International Inc. that is dedicated to the
development of non-traditional applications for cellulose
filaments. The extraction technology was developed by FPInnovations
Inc., one of Canada's largest
scientific forest product research and development centers, of
which Resolute is a member.
The project will be funded in part by Quebec's Department of Forests, Wildlife and
Parks ($2.5 million),
Investissement Québec ($4.2 million)
and Natural Resources Canada ($4.9 million).
Cautionary Statements Regarding Forward-Looking
Statements in this press release that are not reported financial
results or other historical information are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. They include, for example, statements regarding
the investments in the Kénogami paper mill as well as the
benefits and synergies expected from the investments.
Forward-looking statements may be identified by the use of
forward-looking terminology such as the words "will," "will be,"
"could," "may," "should," "believe," "project," "expect," and other
terms with similar meaning indicating possible future events or
potential impact on our business or our shareholders.
The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantee of future
performance. These statements are based on Resolute's management's
current assumptions, beliefs, and expectations, all of which
involve a number of business risks and uncertainties that could
cause actual performance or outcomes to differ materially from
those expressed or implied in this press release. The potential
risks and uncertainties that could cause Resolute's actual future
financial condition, results of operations and performance to
differ materially from those expressed or implied in this press
release include, but are not limited to, any
inability to achieve or maintain the investments, benefits and
synergies expected from the investments in the Kénogami
mill, and the potential risks and uncertainties described
under the heading "Risk Factors" in Part I, Item 1A of Resolute's
annual report on Form 10-K for the year ended December 31,
All forward-looking statements in this press release are
expressly qualified by the cautionary statements set out or
referred to above and in Resolute's filings with the U.S.
Securities and Exchange Commission and the Canadian securities
regulatory authorities. Resolute disclaims 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
market pulp, tissue, wood products, newsprint and specialty papers,
which are marketed in close to 70 countries. The company owns or
operates some 40 facilities, as well as power generation
assets, in the United States and
Canada. Resolute has third-party
certified 100% of its managed woodlands to 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 Exchange.
Resolute has received regional, North American and global
recognition for its leadership in corporate social responsibility
and sustainable development, as well as for its business practices.
Visit www.resolutefp.com for more information.
SOURCE Resolute Forest Products Inc.