The Antidumping and Countervailing Duties cases filed by Norpac in August against the Canadian UGW industry has reached the official stage of being investigated by the United States ITC and DOC. The increasing legal costs and the incremental costs associated with the inordinate amount of our corporate personnel’s time that is associated with the efforts needed to defend ourselves from the unfounded accusations levied on our industry are staggering. We also expect to have to start depositing interim duties beginning in early January 2018. Therefore, effective December 1, 2017, we will increase our 48.8 gms newsprint transaction price by $30/MT. The transaction price for our other newsprint and UGW grades and basis weights will increase accordingly. It is Kruger’s intention to rescind this increase once the threat of the duties is lifted and once the investigation is completed.
Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced the selection of a state-of-the-art tissue machine for the project at its Calhoun mill, in Tennessee. Supplied by Valmet, the Advantage New Tissue Technology (NTT) machine will produce premium quality tissue products for the consumer market.
This machine is part of the previously announced $270 million project to build a facility to manufacture at-home, premium private label tissue paper, including bath and towel. Preparation work has begun at Calhoun, and the machine is expected to start making tissue in the first quarter of 2017.
“This is the first time we will produce products directly for the consumer market,” stated Richard Garneau, president and chief executive officer. “The selection of the Advantage NTT tissue machine is in line with our promise to retailers to install equipment that will offer the highest quality and the differentiation they seek for their store brands.”
The move into the tissue market represents an important step forward in Resolute’s corporate growth strategy, and the company will continue to evaluate opportunities to expand its presence in this growing market segment.