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
Trump confronts repeated boos during raucous Libertarian convention speech
Donald Trump was booed repeatedly while addressing Saturday night’s Libertarian Party National Convention.
This type of screen time has the worst effect on kids: experts
According to some experts, there is one type of screen time that is continuously excessive, and it's having a severe effect on our children.
Family of toddler found dead at small-town Ont. daycare no closer to answers after year of investigation
A year has passed since two-year-old Vienna Irwin was found on the property of a home-based daycare in small-town Ontario, but her family says they are no closer to answers of what happened that day.
Grayson Murray, two-time PGA Tour winner, dead at 30
Two-time PGA Tour winner Grayson Murray died Saturday morning at age 30, one day after he withdrew from the Charles Schwab Cup Challenge at Colonial.
Humboldt Broncos crash victims and families react to decision to deport truck driver
The family of one of the victims of the Humboldt Broncos bus crash in 2018 says they are 'thankful' for a decision by a Calgary immigration board to deport the driver of the truck involved.
Fatal plane crash reported near Squamish, B.C.
The Transportation Safety Board of Canada has confirmed it is working with local Mounties and the BC Coroners Service after a plane crash near Squamish, B.C. Friday night.
'God forgives but we don’t': Loud outburst from stabbing victim’s family during sentencing hearing
An emotional outburst in a London, Ont. courtroom Friday disrupted the sentencing hearing of a woman who pleaded guilty for her part in the death of 29-year-old Mohammed Abdallah.
Three dead after vehicle plunged down a 100-foot embankment in Shediac, N.B.
Three people have died after a vehicle veered off the road in Shediac N.B., Friday morning.
Appeal denied for Edmonton soldier accused of trying to kill her 3 children
An Edmonton woman found guilty of trying to kill her three children has been denied an appeal.