Montreal, Quebec, Canada 07 October 2015 -- /CNW Telbec/ -- Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced the completion of the selection of all the key equipment for the new tissue facility being built at its Calhoun pulp and paper mill, in Tennessee.
In addition to the previously announced Advantage NTT tissue machine, the company has committed to the purchase of the new Futura Andromeda converting technology and Infinity packaging solution. The selection of the state-of-the-art equipment followed a rigorous process to ensure best-in-class flexibility and ability to deliver the highest quality products for the premium quality consumer market.
On June 1, 2015, the company unveiled a $270 million investment in a new facility that will manufacture at-home, premium private label tissue paper, including bath and towel. The operation is expected to begin producing tissue in the first quarter of 2017.
"This completes the selection of major equipment and finalizes the first step in delivering the highest quality product to retail customers for their store brands," stated Richard Garneau, president and chief executive officer.
The move into the tissue market represents an important step forward in Resolute's growth strategy, and the company will continue to evaluate opportunities to expand its presence in this growing market segment.
Cautionary Statements Regarding Forward-Looking Information
Statements in this press release that are not reported financial results or other historical information of Resolute Forest Products Inc. are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to: our ability to successfully penetrate the market and the expected benefits of the tissue project generally; the costs and project scheduling associated with the construction of the new tissue and converting facility; our business and operating outlook in the tissue markets, our assessment of those market conditions, and our prospects, growth strategies and the industry in general; and strategies for achieving our goals generally. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "anticipate," "attempt," "project" and other terms with similar meaning indicating possible future events or potential impact on our business or Resolute's shareholders.
The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. The potential risks and uncertainties that could cause Resolute's actual future financial condition, results of operations and performance to differ materially from those expressed or implied in the press release referred to above include, but are not limited to, the impact of currency fluctuations on our competitive position, selling prices and manufacturing costs; the impact of global economic conditions; intense competition in the forest products industry and our ability to compete effectively; negative publicity, even if unjustified, which could have a negative impact on our brand and the marketability of our products; the highly cyclical nature of the forest products industry, which could impact the prices of and demand for our products which could result in small or negative profit margins, lower sales volumes and curtailment or closure of operations; our ability to maintain adequate capital resources to provide for all of our capital requirements, which are substantial; any inability to successfully implement our strategies to increase our earnings power; the impact of changes in laws or regulations; any difficulties in obtaining wood fiber at favorable prices, or at all; the impact of changes in the cost of purchased energy and other raw materials, which could lead to higher manufacturing costs and reduce our margins; the impact of changes in political or economic conditions in Canada, the United States or other countries in which our products are manufactured or sold; the impact of any labor disputes; extreme weather conditions or natural or man-made disasters, which could disrupt our supply chain and delivery of our products; cyber security risks; the impact of acquisitions, divestitures or other strategic transactions we may pursue; and the potential risks and uncertainties set forth under Part I, Item 1A, "Risk Factors," of our annual report on Form 10-K for the year ended December 31, 2014.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to at least one of three internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.
Resolute and other member companies of the Forest Products Association of Canada, as well as a number of environmental organizations, are partners in the Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities: environmental, social and economic.
Resolute is proud to be ranked by Corporate Knights as one of Canada's Best 50 Corporate Citizens for 2014. The company and Richard Garneau, president and chief executive officer, have been named to Canada's 2015 Clean50, and Resolute was also awarded The New Economy magazine's global Clean Tech Award for best forestry and paper solutions.