Company near North Bay closing plant, laying off 275 workers
As of July 2, Rayonier Advanced Materials is suspending operations at its Temiscaming High Purity Cellulose plant for an indefinite period.
The company cited sluggish sales as the reason for closing the plant, located in Quebec near the border with Ontario.
“Given current market conditions and high capital and fixed costs associated with the HPC plant, this decision will help mitigate the plant’s ongoing operating losses and improve the company’s consolidated free cash flow,” a news release this week said.
“Today’s announcement is aligned with the company’s focus on improving its balance sheet, leverage position and overall financial performance toward execution of its long-term growth strategy.”
The Temiscaming facility has an annual production capacity of approximately 150,000 metric tons, with roughly 30 per cent historically dedicated to specialty cellulose materials.
“The company will be working directly with its customers to support their specialty cellulose needs in both the short- and long-term,” the release said.
“Today’s announcement will result in approximately 275 layoffs.”
High Purity Cellulose is used in a range of products, including construction materials, coatings, food and pharmaceutical products. It is also used to enhance texture, thicken syrups, and enable the development of slow-release medications.
“Persistent market weakness, uncertain availability of affordable wood fiber, and high capital and fixed costs have posed significant challenges for the Temiscaming HPC plant,” said company CEO De Lyle Bloomquist is quoted as saying in the release.
“This decision, which we do not take lightly, is made only after a rigorous strategic review in which multiple alternatives were thoroughly explored. We are mindful of the impact this will have on affected employees and will take appropriate measures to assist these employees in keeping with the collective agreement, RYAM values and applicable law.”
The decision does not affect RYAM’s paperboard and high-yield pulp plants located adjacent to the Temiscaming HPC plant.
These two plants, which are part of an ongoing sales process announced last October, remain competitive and will continue to operate at full capacity.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
RYAM is a global leader of cellulose-based technologies, including high-purity cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals, and other industrial applications. The company also manufactures products for paper and packaging markets.
CTVNews.ca Top Stories
Woman with liver failure rejected for a transplant after medical review highlights alcohol use
For nearly three months, Amanda Huska has been in an Ontario hospital, part of it on life support, because of severe liver failure. Her history of alcohol use is getting in the way of her only potential treatment: a liver transplant.
$500K-worth of elvers seized at Toronto airport
Fishery and border service officers seized more than 100 kilograms of unauthorized elvers at the Toronto Pearson International Airport on Wednesday.
Box tree moths have infested Ontario and experts say more are coming. Here's what to do to protect your garden
An invasive moth species is on the rise in Canada and, if you've planted a certain shrub, it could stand to ruin your garden.
Thousands are expected to rally on Washington's National Mall in support of Palestinian rights
Thousands of protesters are expected to turn out for a rally in the American capital Saturday in support of Palestinian rights and an immediate end to Israeli military operations in Gaza.
Hundreds walk backwards in downtown Montreal to symbolize the decline of LGBTQ2S+ rights
On Friday, hundreds gathered and walked backwards in the heart of Montreal to honour the International Day Against Homophobia, Transphobia and Biphobia.
B.C. man 'attacked suddenly' by adult grizzly near Alberta boundary: RCMP
A B.C. man is recovering from multiple injuries after he was "attacked suddenly" by an adult grizzly bear near Elkford Thursday afternoon.
Banking mogul suing government after intelligence leaks leave him shut out of Canadian economy
Chinese Canadian banking mogul Shenglin Xian has launched a $300 million lawsuit against the federal government. It’s a means to find the source of intelligence leaks which Xian says has cost him his livelihood.
Jesus is their savior, Trump is their candidate. Ex-president's backers say he shares faith, values
As Donald Trump increasingly infuses his campaign with Christian trappings while coasting to a third Republican presidential nomination, his support is as strong as ever among evangelicals and other conservative Christians.
To plant or not to plant? Gardening tips for May long weekend
May long weekend is finally here, and with the extra time off you may be getting the itch to head out to your garden and plant. However, the old debate whether you should plant now, or wait, is still ever-present.