Resolute Forest Products has announced a decision to build a state-of-the-art facility to manufacture at-home, premium private label tissue paper, including bath and towel.
- This is an important step forward for Resolute as we execute on our growth strategy in a way that maximizes our ability to capture synergies and deliver superior value. We have been studying this option to diversify into the tissue business for quite some time, and we will continue to look at opportunities to expand our presence in this growing market, said Richard Garneau, president and chief executive officer, in a press release.
- Once fully operational, Resolute will produce high-quality products at one of the most competitive and efficient tissue operations. We will work to be a preferred supplier of major private label retailers by being the best at meeting their needs in customer service and the quality promise of their store brands, continues Richard Garneau.
The tissue paper machine and converting operations will be built at the Calhoun mill in Tennessee. This $270 million project represents the largest investment made by Resolute since 2010. At full capacity, the new tissue and converting facilities will produce approximately 60,000 metric tons per year of at-home, premium bath tissue and towel, focused on the growing private label market. With market feasibility studies, technology selection and project engineering nearly complete, construction is expected to begin shortly, with ramp-up expected to start in the first quarter of 2017. The tissue machine will use excess slush pulp over and above the additional dried market pulp capacity associated with the previously announced continuous pulp digester project.