Resolute Forest Products, Montreal, Que., Canada, this past week said that it will shut down PM 2 (fine papers) at its Catawba S.C., mill on June 30, 2017, eliminating 180 jobs. The mill is some 30 miles south of Charlotte, N.C.

 

 

Resolute has experienced lower demand for all kinds of lightweight, coated paper products, including magazine, catalog, and flyer insert grades, according to spokeswoman Debbie Johnston. "With so much communication shifting to digital, it has an impact on the paper market," Johnston told the Charlotte Observer in a report this week.

Production of the fine paper grades on PM 2 will be absorbed by the Mill’s PM 3, which is larger and faster, Johnston said.

According to a published statement by Resolute, the company had made "significant capital investment" to reduce operating costs for the paper machine it is shutting down. Despite these efforts, "economic gains were insufficient to overcome demand decline and price erosion."

The company further stated that "we recognize the impact this decision will have on our employees, their families, and the local community. As is customary, the company will work with affected employees and community representatives to mitigate the impact of the idling." 

Resolute employs 600 people in Catawba, where it has a production capacity of 720,000 metric tpy of paper products. About 193,000 metric tpy of coated paper capacity will be eliminated by idling PM 2, the company said.