Resolute Forest Products confirms the signature of an agreement with the Quebec government
- Renewal of water power leases for certain generating stations
- Consolidation for some Quebec facilities
MONTREAL, Feb. 28, 2014 /PRNewswire/ - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today confirmed the signature of a framework agreement with the Quebec government and explained the measures found in the agreement. The agreement includes measures for renewal of water power leases for certain generating stations in Quebec's Saguenay-Lac-Saint-Jean region as well as consolidation of some of the company's Quebec facilities.
One of the highlights of the framework agreement is that it puts an end to the dispute between the parties concerning the Jim-Gray contract. On December 31, 2011, the Quebec government announced its decision to retake possession of this generating station. At that time Resolute took note of the decision without ever waiving its rights. "Today, I am pleased to be able to conclude this episode, and Resolute will continue to be involved in a good number of Quebec communities," stated Richard Garneau, President and Chief Executive Officer.
The framework agreement also provides for an increase in the timber supply guarantee for the La Doré and Saint-Félicien (Quebec) sawmills as part of the consolidation of Resolute's sawmill operations in the Saguenay-Lac-Saint-Jean region as well as the grant of a 150,000 cubic meter volume of wood for the Aboriginal community of Mashteuiatsh by the Quebec government, which will enable the community to carry out economic development projects.
According to Yves Laflamme, Senior Vice President, Wood Products, Procurement and Information Technology, these volumes will give the sawmills an additional wood supply to maintain their operations while enabling the First Nations community to ensure its economic development. "Consolidation of our activities in the region works if we have enough wood to keep our sawmill operations viable. With this consolidation, we can maintain a level of activity that improves the profitability of these operations, keeps quality jobs in the region and ultimately lets us justify investments," Mr. Laflamme stated.
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 over 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 90 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 also a member of the World Wildlife Fund's Climate Savers program, in which businesses establish ambitious targets to voluntarily reduce greenhouse gas emissions and work aggressively toward achieving them.
SOURCE Resolute Forest Products Inc.