The idling comes as a result of a decrease in demand for newsprint, coupled with high operating costs for the machine, which produced 215,000 metric tons per year. The decision follows Resolute’s March 11 acquisition of the 49 percent interest in Calhoun Newsprint Company (“CNC”) owned by The Herald Publishing Company, LLC, its joint-venture partner.
The Calhoun mill, located just across the Bradley County line in McMinn County, presently employs 610 workers. It will continue to operate the two specialty paper machines and the pulp dryer, according to company officials.
Today’s announcement will affect approximately 150 positions at the mill.
According to the news release, distributed by Remi G. Lalonde, vice president of Investor Relations, and Debbie Johnston, director of U.S. Public Affairs, “The company recognizes the impacts this decision will have on the employees concerned and their families. Severance will be provided to affected employees according to the local labor agreement or the corporate policy for salaried employees. Outplacement assistance will be made available through government agencies.”
Additional information about the Resolute announcement will be published in Wednesday’s edition of the Cleveland Daily Banner.