Resolute takes downtime at Quebec mill

Resolute Forest Products Inc., Montreal, has announced that it will be temporarily closing its Kénogami, Quebec, supercalendered paper mill from June 23 to July 4, 2016.

The company cites the ongoing market disruption caused by measures taken by the former provincial New Democratic Party (NDP) Government in Nova Scotia and the former Conservative Government of Canada in support of the Port Hawkesbury (Nova Scotia) paper mill as the reasons for the shutdown.

In a news release, Resolute says it has consistently raised concerns with government officials, including at the federal level, that special measures of support discriminated in favor of Port Hawkesbury and resulted in, among other damages, the permanent closure of Resolute's Laurentide, Quebec, paper mill about two years ago.

In light of the provincial and federal government providing assistance to the Nova Scotia mill, late last year, Resolute filed a Notice of Arbitration with the Canadian Federal Government under the North American Free Trade Agreement (NAFTA).

Richard Garneau, Resolute president and CEO, says, "In light of today's announcement, I reach out again to Canadian International Trade Minister Freeland urging her to address the competitive disadvantage in which supercalendered manufacturers, such as Resolute, find themselves today. We are in the untenable position of dealing with a dual set of consequences: unfair government support of Port Hawkesbury here in Canada, and retaliatory, protectionist actions by U.S. authorities.

“At least as far as the U.S. part of the problem is concerned, it is essential that Canada ensure the formation of a fair and equitable Chapter 19 Panel under NAFTA to rectify the injustice visited upon Resolute by the U.S. Department of Commerce," he adds.