Resolute Declares $38 Million Modernization Project at Kenogami Mill

SEATTLE (Scrap Monster):  Resolute Forest Products, Inc. announced an investment of $38 million at its Kénogami paper mill in Quebec. The investment project comprises of construction of a commercial plant as well as optimization of mill operations.

According to company press release, it plans to construct a new plant that will specialize in the production of cellulose filaments that are mechanically processed from wood fiber, without using chemicals or enzymes. The plant, which will be built at an investment of $27 million, is slated for 2021 startup. Initially, it will create 8 new jobs. Upon reaching its full capacity of 21 metric tons per day, a total of 23 jobs will be created. It must be noted that the mill currently employs around 200 people.

In addition, the company plans to invest $11 million towards modernization of the mill, in order to produce high-grade SCA+ supercalendered paper. The enhancement will help to improve the short-term competitiveness by expanding its access to more markets. Currently, the mill has an annual production capacity of 133,000 metric tons of specialty paper.

The project has already received funding of $2.5 million from Quebec's Department of Forests, Wildlife and Parks, $4.2 million from Investissement Québec and $4.9 million from Natural Resources Canada.

The investment will allow Resolute to enter into non-traditional growth markets, said Yves Laflamme, president and chief executive officer.

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