Resolute Forest Products announced a $105 million upgrade to its Calhoun, Tennessee, pulp and paper mill, including the installation of a modern continuous pulp digester and other wood chip processing equipment. When completed by mid-2016, the project will contribute to significantly lower the mill's costs, increase its pulp capacity and improve the mill's versatility.
"This investment will make a good mill even better," said Richard Garneau, president and chief executive officer. "It will improve the mill's long-term competitiveness by lowering its costs and giving it the flexibility to adjust grade production to changing market dynamics. This is a significant capital project, which reflects the company's commitment to this facility and confidence in the business environment in Tennessee."
In addition to creating approximately 50 new jobs to join the 480 employees currently at the mill, Resolute expects the project's implementation to produce efficiencies from better wood yield and lower steam and chemical usage. It will also increase the pulp machine's production output and maximize dryer utilization for internal purposes, giving the mill the versatility to manufacture a range of products, including specialty papers such as Resolute's Align™ uncoated freesheet substitutes, and value-added grades not presently in the product offering.
The Calhoun mill currently operates three machines and a pulp dryer and has a total mill capacity of approximately 609,000 metric tons of market pulp, specialty papers and newsprint. Along with Resolute's other mills in the area, it sources its fiber from the competitive and stable U.S. southeast fiber basket.
