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
Teen was doing homework at family's Mississauga, Ont. restaurant when gunman opened fire: testimony
The 13-year-old sister of a young man killed in the attack on her family’s Mississauga restaurant in 2021 took the stand in a Brampton courthouse on Monday to describe the terrifying moments of coming under fire.
'Repetitive partisan conduct': Conservatives to force vote on ousting Speaker Greg Fergus
The federal Conservatives have advanced a motion that will force MPs to vote on whether to oust Greg Fergus as House of Commons Speaker, after MPs' deputy adjudicator ruled Monday that the Liberal member's allegedly errant partisan event invite required urgent attention.
Trial for B.C. man accused of killing, dismembering wife begins
The trial for a Langley man accused of killing his wife began Monday, with the prosecutor laying out a disturbing series of facts agreed upon by both Crown and defence.
Robertson's hat-trick drives Stars to Game 3 win over Oilers
Jason Robertson's hat-trick goal midway through the third period broke a deadlock and proved to be the eventual winner as the Dallas Stars beat the host Edmonton Oilers 5-3 in Game 3 of the Western Conference Final to take a 2-1 series lead.
What a CBSA strike could look like, according to an expert
Slowed or interrupted travel, the passing of goods and significantly restricted borders should be expected if Canadian border workers take upcoming strike action.
WATCH Alta. man rescues wild foal trapped on steep cliffside
A man's daring rescue of a newborn wild foal that was trapped after falling down a steep embankment was caught on video over the weekend.
Severe thunderstorms, tornado watch in some areas of Canada. Here's where
Depending on where you live, you can expect to get a mixed bag of weather this week, as local forecasts predict heavy rain, strong wind, severe thunderstorms and even snowfall across some areas of Canada.
B.C. senior prepares to move due to devastating effects of fraud
A Courtenay, B.C., senior is downsizing and packing to move as she comes to accept she can no longer afford to stay in her home, after falling victim to a scam that robbed her of her life savings worth more than $100,000.
Israel close to approving Gaza reunification program before Rafah invasion: Miller
Immigration Minister Marc Miller says Israel seemed to be on the verge of approving a program to get Palestinian relatives of Canadians out of the Gaza Strip before the country's invasion of the town of Rafah.