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Resolute to Idle Nova Scotia Newsprint Mill

June 19, 2012

Resolute Forest Products has idled its Mersey newsprint mill in Brooklyn, Nova Scotia due to falling newsprint prices. The idling will affect 320 employees.

"The mill produces newsprint primarily for export markets and is unable to compete due to declining prices in those markets, caused mainly by unfavorable currency fluctuations, stated Richard Garneau, President and Chief Executive Officer of Resolute.  "The decision to indefinitely idle production at the facility was difficult as we are mindful of the impact it will have on affected employees and local communities. We have worked diligently with the provincial government, our employees, union leadership and other stakeholders but simply could not overcome the inherent challenges."

The operation is a  joint venture between Montreal-based Resolute Forest and Washington Post Company. The mill has a capacity of about 250,000 tons. Resolute operates 21 pulp and paper mills and 22 wood products facilities in the U.S., Canada and South Korea. It sells paper products in over 90 countries. The company is the world's largest manager of FSC-certified forests.

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