MCMINN COUNTY, Tenn. — Resolute Forest Products announced Thursday that its Calhoun mill in McMinn County, which employs hundreds of people in the community, would stop its pulp and paper operations. They said the decision could affect 350 positions at the mill.
In response, McMinn County Mayor John Gentry said that the county would help workers affected by the layoff find work in other industries that are looking for skilled workers.
"I appreciate Resolute Forest Product’s partnership over many decades as well as their continued commitment to the operation of their Calhoun tissue plant," he said in a post on social media.
The Calhoun mill employed 545 people and has the capacity to produce 147,000 metric tons of pulp and 149,000 metric tons of paper, as well as 60,000 metric tons of tissue, according to a release from the company.
They said the mill was not making enough money, even with "strong market conditions for both the pulp and uncoated freesheet paper it manufactures." They said the company took an operating loss of $62 million at the mill.
In a release, they said tissue manufacturing and converting will continue at the site and the nearby distribution center will also continue operating.
Resolute Forest Products said they thought stopping the pulp and paper operations would lead to the mill making more money — $35 million or $40 million. They said that amount reflects the fewer operating costs associated with the operations.
Pulp and paper operations will continue for 60 days while company leaders work to safely shut down the mill, they said in a release.
"Our focus now will be to support our employees through this difficult time, to operate for the remaining period with the same degree of focus on safety and quality, and to facilitate a smooth transition for our customers," said Remi Lalonde in a release, CEO of the company.
Officials said they will also work with the mill's union leaders to apply the mill's collective agreement, benefiting workers who may lose their income. Company officials also said they would provide severance benefits to people directly affected. information about the amount in those severance benefits was not immediately available.
They also said they will work with local authorities and government officials to mitigate the indefinite idling's impact on the community.