www.WDIO.com

240 Layoffs in Fort Frances

Posted at: 11/21/2012 10:56 AM
Updated at: 11/21/2012 11:05 AM

null

About 240 employees will be out of work by the end of the month due to a partial shutdown of the Resolute Forest Products facility in Fort Frances, Ont.

The Montreal-based company announced the indefinite idling of the kraft mill and paper machine number 5 at Fort Frances on Tuesday, citing challenging market conditions.  A second paper machine at the Fort Frances facility will remain in operation.

"The kraft mill situation is particularly difficult given Fort Frances' operating configuration and the recent decision by a key customer to stop consuming the pulp supplied by Resolute to its mill," said Resolute's President and Chief Executive Officer, Richard Garneau, in a press release. "Our kraft mill's drying capacity is limited to about 40 percent of its production capacity, making it impossible to continue operating the mill in a profitable manner."

The company's website says about 440 people work at the Fort Frances facility, meaning about 200 would remain on the job after the shutdown of the kraft mill and paper machine number 5.

Resolute said it is exploring alternative product possibilities for the pulp mill, which will be idled in a manner that will protect the equipment.

Resolute Forest Products is the company formerly known as AbitibiBowater.