Resolute closes Iroquois Falls paper mill: close to 200 employees to be out of work.

• Position: NEWS

The permanent closure of Resolute Forest Products has left the Town of Iroquois Falls scrambling to cope in the aftermath of the loss of one of its biggest employers.

On Dec. 5, Resolute announced the permanent closure of 465,000 metric tons of newsprint production capacity in Canada, including the Iroquois Falls newsprint mill and paper machines at Baie-Comeau and Clermont, both in Quebec.

The company cited a variety of contributing factors to the decision: weakness in the global newsprint business; fibrerelated issues, including availability and costs; transportation challenges; and, in Quebec, power costs.

"Market conditions have had a major impact on our newsprint operations in both Ontario and Quebec, and the cost position of these operations has made them vulnerable to the structural decline in newsprint," president and CEO Richard Garneau said in a news release.

Garneau also pointed to "the ill-founded attacks of environmental groups" as an additional factor. Those groups spread "malicious falsehoods" suggesting Reso-lute's non-compliance with Ontario's Crown Forest Sustainability Act and its Quebec counterpart, he said.

"The provinces of Ontario and Quebec have forest management regimes that are among the very best in the world, and both governments are ensuring compliance," Garneau said.

The Iroquois Falls plant employs roughly 180 people and has an annual production capacity of 210,000 metric tons of newsprint. Its closure was scheduled for Dec. 22, and closure-related activities set to run into January.

The company said it would work with union representatives and government officials to help those affected.

"The decision to rationalize our newsprint capacity was difficult, as we are mindful of the impact it will have on affected employees," added Garneau. "Resolute remains committed to customer service and to the delivery of high-quality products and will work closely with customers to continue to meet their needs."

Iroquois Falls Mayor Michael Shea expressed sympathy for those families that will be impacted by the closure, but expressed hope that a long-term solution could be found to keep the town viable.

"We need to be creative and proactive," he said. "Looking forward, we have to all work together, government and management. This is vital for the future of Iroquois Fans to stay"

Acknowledging the closure would result in a downturn...